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Business
10 Oct 2017

Gujarat: Petrol-price cut by Rs. 2.93, diesel by Rs. 2.72

Petrol and diesel are set to get cheaper in Gujarat after a 4% cut in VAT. Till now, the state government had been levying a 24% VAT on both.

Thus from midnight, petrol will cost Rs. 67.53/L after a fall of Rs. 2.93. Meanwhile, diesel will cost Rs. 60.77/L, down by Rs. 2.72.

The move will cost the government Rs. 2,316cr.

In context

Petrol and diesel to get cheaper in Gujarat
The move being seen as a political gimmick

Politics

The move being seen as a political gimmick

The timing of the price cut is being seen as an attempt by the BJP to woo the public; the state will go to polls later this year.

However, CM Vijay Rupani denied such criticism. "Some days back, Central Government had announced cut in excise on fuel and it had also recommended state governments to consider change in their taxation," he explained.

States

Gujarat first state to follow Centre's lead

Days earlier, the Centre reduced excise duty on petrol and diesel for the first time. There was a reduction of Rs. 2 on both fuels.

Oil Minister Dharmendra Pradhan called states the "biggest beneficiaries" of fuel revenues, which get "all VAT collection plus 42% of central excise collections".

But states like Bihar have asked the Centre to first reduce base prices of petroleum products.

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