After Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol of 8 rupees per litre and diesel of 6 rupees per litre on Saturday, the prices of petrol and diesel have remained unchanged today.
After taking into account the impact on other levies, the excise duty cut will result in a reduction of 9.5 cents per litre on petrol in Delhi and 7 cents per litre on diesel. When the excise cuts take effect today, petrol will cost 96.72 per litre in Delhi, compared to 105.41 currently, and diesel will cost 89.62 per litre, compared to 96.67 currently.
The Maharashtra government slashed the value-added tax (VAT) on petrol and diesel on Sunday, a day after the central government announced a reduction in fuel prices. The VAT on petrol has been reduced by 2.08 per litre, while the VAT on diesel has been reduced by 1.44 per litre.
After the reductions in excise duty and VAT, a litre of petrol will cost 111.35 in Mumbai, and a litre of diesel will cost 97.28. Petrol and diesel prices in Chennai are 102.65 and 94.24 per litre, respectively. Petrol costs 106.03 in Kolkata, while diesel costs 92.76. One litre of petrol will cost 101.94 in Bengaluru, while one litre of diesel will cost 87.89. One litre of petrol will cost 97.81 in Gurugram and diesel is 90.05 in Delhi.
Petrol is subject to excise duty imposed by the federal government. Similarly, the state government imposes ad valorem VAT on gasoline. The VAT on gasoline varies by state. The VAT is automatically reduced because the centre has reduced the excise duty on diesel and gasoline.
The Centre has repeatedly urged states, particularly non-BJP-ruled states, to lower VAT on gasoline and diesel, but the states have refused.
The move came after opposition parties and economists criticised the government’s inflation management. WPI (wholesale price inflation) hit a new high of 15.08 percent in April, while retail inflation hit a near-eight-year high of 7.79 percent.
