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Maha govt reduces VAT on petrol, diesel by Rs 5 and Rs 3 per litre: CM Eknath Shinde

Deputy Chief Minister Devendra Fadnavis said that the decision is a part of the Shiv Sena-BJP government's commitment to people's welfare.

Maha govt reduces VAT on petrol, diesel by Rs 5 and Rs 3 per litre: CM Eknath Shinde - adt
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Mumbai, First Published Jul 14, 2022, 1:46 PM IST

Maharashtra Chief Minister Eknath Shinde on Thursday announced that the value-added tax (VAT) on petrol and diesel would be reduced by Rs 5 and Rs 3 per litre, respectively. While addressing the press after a cabinet meeting at Mantralaya, Chief Minister Eknath Shinde said that the decision would cost the state exchequer Rs 6,000 crore.

Following the reduction in VAT, the state will bear a burden of Rs 6000 crore. 

A great relief to Maharashtrian and Marathi Manus tweeted Deputy CM Devendra Fadnavis. "We are pleased to announce that the new government, led by Chief Minister Eknathrao Shinde, has decided to reduce petrol and diesel prices by 5/litre and 3/litre, respectively."

Maharashtra has joined Kerala, Rajasthan, Odisha, and Uttar Pradesh in reducing the value-added tax on petrol and diesel for the benefit of the general public. This comes nearly two months after the Central Government decided to reduce petrol excise duty by Rs 8 per litre and diesel excise duty by Rs 6 per litre.

On May 21, Union Finance Minister Nirmala Sitharaman announced, "We are lowering the Central Excise Duty on Petrol by Rs 8 per litre and the Duty on Diesel by Rs 6 per litre. This will reduce petrol prices by Rs 9.5 per litre and diesel prices by Rs 7 per litre."

The reduction will cost the government approximately Rs 1 lakh crore per year in revenue. Following the reduction, petrol in Delhi now costs Rs 96.72 per litre (up from Rs 105.41 previously) and diesel costs Rs 89.62 per litre (Rs 96.67 now). In Mumbai, a litre of petrol costs Rs 111.35, which will be reduced by Rs 5 after the VAT reduction. Diesel costs Rs 97.28 per litre and will be reduced by Rs 3.

Before May, the Centre announced a VAT reduction on the eve of Diwali. Excise duties on petrol were reduced by Rs 5 per litre and diesel by Rs 10 per litre to relieve the commoner suffering due to skyrocketing auto fuel prices.

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