Petrol pricey in states with no VAT cut: Report

After Prime Minister Narendra Modi targeted seven states – Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Jharkhand and Rajasthan - for not reducing value-added tax (VAT) on fuel even after Centre slashed excise duties, leaders of Opposition reacted sharply.

Starting from November 3, 2021, the Centre deducted the excise duties on petrol and diesel by Rs 5 and Rs 10. As per a report by Business Standard, petrol price in the capitals of these seven states rose by Rs 4.66 per litre between November 3, 2021 to April 27, 2022.

Also Read | Explained: How much tax do you pay on Rs 100 of petrol?

Meanwhile, the price was reduced by Rs 1.41 per litre in the capitals of those states which decided to cut VAT.

For example, Punjab cut VAT on petrol by a maximum of Rs 10.08 per litre and the consumer price reduced by Rs 6.4 per litre between November 3, 2021 to April 27, 2022. Whereas in Hyderabad and Vizag, petrol price rose by Rs 5 and Rs 4.85 per litre, respectively.

The capitals of the seven states which didn’t cut VAT saw a reduction of Rs 1.82 per litre in diesel and the price reduced by Rs 6.55 per litre capitals in seven states which cut VAT.

Leaders from Congress, Trinamool Congress, Shiv Sena and other Opposition parties reacted sharply to Modi’s comment on these states, with some saying that the states have limited provisions to mop up revenue. They also accused the Centre of shirking responsibility.

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