Maharashtra: Petrol, diesel become cheaper. Check new rates
What's the story
The Maharashtra government has decided to reduce value added tax (VAT) on petrol and diesel by Rs. 5 and Rs. 3 per liter, respectively, Chief Minister Eknath Shinde said on Thursday. He said that the decision would entail a burden of Rs. 6,000 crore on the state exchequer. Petrol in Mumbai will now cost Rs. 106.35 per liter and diesel Rs. 94.28 per liter.
Context
Why does this story matter?
After taking over as CM, Shinde had on July 4 announced that the state government will reduce value-added tax (VAT) on petrol and diesel. After winning the floor test, Shinde had said that the state Cabinet would take the decision. In May, the Uddhav Thackeray government had cut the state-imposed tax on petrol and diesel by Rs. 2.08 per liter and Rs. 1.44, respectively.
Price cut
Petrol in Pune to cost Rs. 105.88 after tax cut
Earlier, the price of petrol in Mumbai was Rs. 111.35 per litre and diesel was priced at Rs. 97.28 per liter. In Pune, the petrol price will be Rs. 105.88 per liter, while diesel will be priced at Rs. 92.37 for one liter. Petrol in Thane will now cost Rs. 106.49, while the price of diesel will be Rs. 94.42 per litre.
Benefit
New prices will come into effect from Thursday midnight
Deputy CM Devendra Fadnavis said the decision was part of the Shiv Sena-Bharatiya Janata Party (BJP) government's commitment to people's welfare. CM Shinde said that his government will ensure the burden of Rs. 6,000 crore does not impact development works. He further said that this decision will hugely benefit the common man. Notably, the new prices will come into effect from Thursday midnight.
Fuel prices
Other states also reduced VAT in the past
Besides slashing the fuel prices, the state Cabinet has also decided to implement "Swachh Maharashtra Abhiyan (Citizen) 2.0 Abhiyan." Earlier Kerala, Rajasthan, Odisha, and Uttar Pradesh had reduced the VAT tax on petrol and diesel. Shinde's move comes nearly two months after the Central government decided to cut excise duty on petrol by Rs. 8 per liter and on diesel by Rs. 6/liter.