Petrol, diesel prices fall sharply as more states slash VAT

Petrol and diesel prices in some states have fallen sharply

Petrol and diesel prices in many states fell sharply on Friday as many states announced VAT cuts after the Centre’s move to slash excise duty levied on fuel.

The reduction in excise duty by the Centre, followed by a reduction in VAT in several states, has led to a sharp drop in petrol and diesel rates after they had reached a record high.

Some experts feel that petrol and diesel prices may continue to rise due to firming crude oil rates, the recent price cut is expected to provide much needed relief to citizens and working class.

It may be noted that on the Occasion of Diwali, the central government had announced an excise duty cut of Rs 5 per litre for petrol and Rs 10 per litre for diesel.

Petrol now costs Rs 103.97 per litre in Delhi and Rs 109.98 per litre in Mumbai. It has been reduced to Rs 104.67 per litre in Kolkata and Rs 101.51 per litre in Chennai.

In some cities, including Bengaluru Rs 100.58/litre, Gurugram Rs 95.90/litre, Noida Rs 95.36/litre, Lucknow Rs 95.28/litre, petrol rates have fallen sharply after VAT reduction by some states.

Diesel prices have also fallen sharply after the tax cuts by the Centre and states. It has been reduced to Rs 86.67 per litre in Delhi, Rs 89.79 per litre in Kolkata, Rs 94.14 per litre in Mumbai and Rs 91.53 in Chennai.

For the first time over a month, diesel rates in some cities, such as Bengaluru, Noida, Gurugram and Lucknow have fallen below Rs 90 per litre.

The reduction in fuel prices may not provide immediate relief in terms of commodity costs, but experts believe that it will reduce inflationary pressure on the economy and also help businesses lower input costs.