Petrol, diesel prices dip as more states cut VAT
Petrol and diesel prices in several cities across the country saw a sharp decline on Friday after more states announced cuts to the Value-Added Tax (VAT). On Wednesday, the eve of Diwali, the central government had announced excise duty cuts on both the auto fuels. You can check the latest rates for your city here.
Why does it matter?
The reduction in petrol and diesel prices comes as a much-needed relief as fuel rates had touched record highs in recent months. The Bharatiya Janata Party-led (BJP) government had been facing criticism over the rising prices. The Centre had earlier hiked excise duty on auto fuels. However, the prices are expected to increase again in the coming months.
Which all states have announced cuts?
States and union territories which have relaxed VAT include Karnataka, Puducherry, Mizoram, Arunachal Pradesh, Manipur, Nagaland, Tripura, Assam, Sikkim, Bihar, Madhya Pradesh, Goa, Gujarat, Dadra & Nagar Haveli, Daman & Diu, Chandigarh, Haryana, Himachal Pradesh, Jammu & Kashmir, Uttarakhand, Uttar Pradesh, and Ladakh. Most of them are ruled by BJP and its allies. Notably, VAT rates differ across states.
What are the new rates?
On Friday, petrol and diesel prices in Delhi are Rs. 103.97 per liter and Rs. 86.67 per liter. In Mumbai, petrol and diesel are being sold at Rs. 109.98 per liter and Rs. 94.14 per liter. Prices for the two fuels in Chennai are Rs. 101.40 per liter and Rs. 91.43 per liter, respectively. In Kolkata, the rates are Rs. 104.67 and Rs. 89.79.
Prices to rise in coming months
However, the prices of petrol and diesel will increase again in the coming months, according to experts. "It is to understand that we import oil...Today, we have to import 86% of our total oil use. The prices of oils are not in the hands of any government. Both petrol and diesel are de control commodities," energy expert Narendra Taneja told ANI.
