Gujarat and Maharashtra slash fuel prices as Diwali surprise!

Gujarat and Maharashtra slash fuel prices as Diwali surprise!

The reduction in tax comes just before Diwali in the state, where the Assembly polls are due around the year-end.

The rise in Petrol and mineral oil prices have been all time high! A lot of criticism and discussions are ongoing for a long period of time now revolving the price of fuel. While in forgein territories oil costs cheap in India it seems to be rising ever since BJP’s rule.

Among all these now finally there is some good news for the people of Gujarat and Maharashtra at-least. Petrol will cost less and bring some respite!

The Gujarat government has decided to reduce the value added tax (VAT) on fuel by 4 percent. Gujarat Chief Minister Vijay Rupani said on Tuesday, 10 October regarding the cut down.

The reduction in tax comes just before Diwali in the state, where the Assembly polls are due around the year-end.

“After the central government’s instructions, Gujarat has decided to reduce VAT on petrol and diesel by 4 percent from today mid-night,” Rupani said at a press meet.

With this rate cut, the price of petrol will come down by Rs. 2.93 and that of diesel by Rs. 2.72 in the state, he said. The effective price of petrol in Gujarat from Tuesday midnight will be Rs 66.53 per litre and that of diesel Rs 60.77 per litre, the chief minister added.

Because of this move, the state government will suffer a loss of Rs. 2,316 crore annually. “But we have taken this decision in the interest of people,” Rupani said.

The lowering of tax in the poll-bound Gujarat comes after Union Finance Minister Arun Jaitley wrote to all state governments, asking them to reduce taxes on petrol and diesel.

Meanwhile a few hours after Gujarat cut the prices, the Maharashtra Cabinet decided to slash prices of petrol and diesel by Rs. 2 and Rs. 1 respectively, effective from midnight.

After the new rates come into effect, petrol will cost Rs. 75.58 per litre and diesel will cost Rs 59.55 in the state.

The prices are still unfair and should be centralized under GST!

 

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