Petrol, diesel prices fall sharply as more states slash VAT

Petrol, diesel prices fall sharply as more states slash VAT

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Petrol and diesel prices in some states have fallen sharply after taxes levied on fuel were slashed by the Centre and some states. Petrol and diesel prices in many states fell sharply on Friday as more states announced Value-Added Tax (VAT) cuts after the Centre’s move to slash excise duty levied on fuel.

Government of India has taken a significant decision of reducing Central Excise Duty on petrol and diesel by Rs 5 and Rs 10 (per litre) respectively from tomorrow. Prices of petrol and diesel will thus come down accordingly,” the finance ministry said in a statement on Wednesday.

Diesel price in the country also fell significantly on Thursday after Centre’s much-awaited relief. A litre of diesel would cost Rs 86.67 per litre in the national capital. Diesel price came down to Rs 94.14 per litre in Mumbai. In Chennai, a litre of diesel was priced at Rs 91.43 per litre. For a litre of auto fuel, you have to shell Rs 89.79 in Kolkata.

This reduction will not only reduce the fuel prices directly for the consumers but also assist in reduction of costs through the supply chain, eg, inputs, logistics cost, etc, as the excise duty is a non creditable cost for businesses too (being outside of GST).”

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