Lagatar24 Desk
New Delhi, Nov.5: From Ladakh to Puducherry, BJP-ruled states and UTs have lowered petrol prices by as much as Rs 8.7 per litre and diesel prices by Rs 9.52 per litre, as they matched the central government’s promise of a cut in excise duty with lower local sales tax (VAT) rates.
Under pressure, the Union government lowered excise tax on petrol by Rs 5 per litre and diesel by Rs 10 per litre on Wednesday, providing relief to consumers who have been hit by record-high retail fuel costs.
22 states and union territories matched this declaration by lowering VAT rates in various proportions.
According to a price chart provided by state-owned oil businesses, the BJP and its partner-ruled states have seen faster decreases in petrol and diesel prices in contrast to Maharashtra, Delhi, West Bengal, and other states run by other political parties.
The additional decrease, on top of the excise tax drop, is the lowest in Uttarakhand and the largest in the UT of Ladakh due to lesser duty cuts. The price drop on petrol, in addition to the excise reduction, ranges from Rs 1.97 per litre in Uttarakhand to Rs 8.70 in the UT of Ladakh.
The additional savings are due to VAT reductions, which range from Rs 17.5 per litre in Uttarakhand to Rs 9.52 in Ladakh.
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 are the states and UTs that have extended additional VAT.
Due to the reduction in VAT, the price of petrol in Karnataka was reduced by Rs 8.62 per litre, and the price of diesel was reduced by Rs 9.40, while the inhabitants of Madhya Pradesh were given an additional price relief of Rs 6.89 on petrol and Rs 6.96 on diesel. The state of Uttar Pradesh has reduced the VAT on petrol and diesel by Rs 6.96 and Rs 2.04 per litre, respectively.
Rajasthan, Punjab, Chhattisgarh, Maharashtra, Jharkhand, and Tamil Nadu are among the states where the Congress and its partners have yet to decrease VAT. Delhi is ruled by the AAP, West Bengal is ruled by the TMC, Kerala is ruled by the Left, Odisha is ruled by the BJD, Telengana is ruled by the TRS, and Andhra Pradesh is ruled by the YSR Congress.
The excise tax drop on Wednesday resulted in petrol prices falling by Rs 5.7 to Rs 6.35 per litre across the country, and diesel prices falling by Rs 11.16 to Rs 12.88.
The total incidence of price reduction was larger than the Rs 5 per litre fall in excise duty on petrol and Rs 10 per litre cut in excise duty on diesel since states impose local sales tax or VAT not only on the base price but also on the excise duty levied by the Centre. In states with higher VAT, the decline was greater.
According to the price chart, the drop in petrol price in Delhi was Rs 6.07 per litre, and the reduction in diesel price was Rs 11.75.
Rajasthan has the most expensive petrol at Rs 111.10 a litre (Jaipur), followed by Mumbai (Rs 109.98) and Andhra Pradesh (Rs 109.98). (Rs 109.05). With the exception of Karnataka (Rs 100.58), Bihar (Rs 105.90), Madhya Pradesh (Rs 107.23), and Ladakh, most BJP-ruled states have fuel prices below Rs 100 per litre (Rs 102.99).
Similarly, the most expensive diesel is now available in Rajasthan (Jaipur) for Rs 95.71 a litre, followed by Andhra Pradesh (Rs 95.18) and Mumbai (Rs 95.18). (Rs 94.14).
Mizoram has the cheapest diesel, which costs Rs 79.55 a litre.
In Delhi, a litre of petrol costs Rs 103.97, while a litre of diesel costs Rs 86.67.
The rate of VAT varies from state to state, resulting in variable fuel prices.
