New Delhi/UNI: Following the decision of the Union Government to reduce central excise duty on petrol and diesel by Rs 5 and Rs 10 respectively from 4 November onwards, so far 23 states/Union Territories have undertaken reduction of VAT on petrol and diesel.
The maximum reduction in petrol prices has taken place in the UT of Ladakh, followed by the states of Karnataka and Puducherry where prices of petrol have come down by Rs 13.43, Rs 13.35 and Rs 12.85 respectively.
The maximum reduction in the price of diesel has been undertaken by UT of Ladakh, where the cost has come down by Rs 19.61 per litre, followed by Karnataka and Puducherry.
However, 13 states/UTs have not yet undertaken any reduction in VAT in petrol and diesel. Maharashtra, NCT of Delhi, West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Kerala, Andaman & Nicobar, Jharkhand, Odisha, Chattisgarh, Punjab and Rajasthan.
In recent months, crude oil prices have witnessed a global upsurge, leading to steep increase in domestic prices of petrol and diesel over recent weeks which in turn have been exerting inflationary pressure.
The reduction in excise duty on petrol and diesel will boost consumption and keep inflation low, thus helping the poor and middle classes. The decision is expected to further spur the overall economic cycle.
The reduction in excise duty on diesel will be specially beneficial for farmers during the upcoming Rabi season.