Petrol price cut by rs 606 and diesel by rs 1175 per liter in delhi
The central government on Wednesday cut excise duty on petrol by Rs 5 per liter and on diesel by Rs 10 per liter after fuel prices hit a record high. The government took this important step on Wednesday to give some relief to the common people from inflation.
Since states levy local sales tax or VAT (value added tax) not only on the base price but also on the excise duty levied by the Centre, there has been a significant reduction in fuel prices.
According to the notification on the price of state-owned fuel retailers, the price of petrol in Delhi was reduced from Rs 110.04 per liter to Rs 103.97 per liter and diesel price fell from Rs 98.42 per liter to Rs 86.67 per liter accordingly.
Petrol price in Mumbai has come down by Rs 5.87 to Rs 109.98 per liter and diesel by Rs 12.48 to Rs 94.14 per liter. In Kolkata, the price of diesel was reduced by Rs 5.82 to Rs 104.67 per liter and that of diesel by Rs 11.77 to Rs 89.79 per litre.
VAT rates vary from state to state, leading to differences in fuel rates.
The cut in excise duty announced on Wednesday night is the biggest ever. With this, a part of the increase in taxes on petrol and diesel by Rs 13 and Rs 16 per liter respectively between March 2020 and May 2020 has been withdrawn.
With the increase in excise duty, the central tax on petrol was raised to Rs 32.9 per liter and on diesel to Rs 31.8 per liter.
While reducing the excise duty, the central government also urged the states to reduce VAT on petrol and diesel to provide relief to the consumers. Six Bharatiya Janata Party-ruled states Uttar Pradesh, Goa, Karnataka, Uttarakhand, Tripura and Bihar have reduced VAT.
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