Maharashtra: Fuel prices may fall as CM announces tax cut
Fuel prices would see a significant drop in Maharashtra in the coming days following the announcement by the newly appointed Chief Minister Eknath Shinde that the state would drop the Value Added Tax (VAT) on fuel. He said the VAT reduction will take effect after the next cabinet meeting. Notably, most BJP-ruled states have reduced petrol prices, unlike opposition-ruled states.
- As Shinde formed the government in Maharashtra, the struggle switched to capturing control of the Shiv Sena, the organization established by Uddhav Thackeray's father, Bal Thackeray.
- On Monday, he garnered 164 votes from MLAs in the Assembly's trust vote, with the backing of BJP members.
- Analysts believe he will make more populist decisions to get support within the party.
Most BJP-ruled states have reduced VAT on fuel after the Centre reduced excise tax on petrol and diesel in November last year. As the Centre cut excise duty again in May, states such as Uttar Pradesh dropped VAT even further. The Opposition-ruled states, on the other hand, opposed the Prime Minister's proposal to reduce VAT on petrol as a people-relief measure.
Meanwhile, Shinde broke down during his speech in the Maharashtra assembly, his first as chief minister. He revealed about how he almost became CM in the MVA alliance but faced opposition within the party. He alleged that he faced threats to his family over his revolt against Uddhav Thackeray. Later, choked while referring to his children, who died in a boating accident in 2000.
Shinde, who assumed oath as CM last week after deposing Uddhav Thackeray, won the show of strength in the state assembly today. BJP, which is the running ally partner of his camp, is accused of orchestrating the insurrection in Sena. BJP and Shinde group formed an alliance on Wednesday, claiming the right to form the government following Thackeray's removal.
Shinde has declared himself the true Shiv Sena. He claimed to have the backing of more than two-thirds of the party's MLAs. However, gaining the backing of party followers and cadres who associate the party with Thackeray's name is a difficult call. So, analysts said Shinde is trying to lure more people into his fold. More populist initiatives are also expected soon.
