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Rajasthan, Goa, and Madhya Pradesh are among the states that announced fuel price reductions.
Digital Desk: Fuel duty will drop, and a $200 subsidy for consumers purchasing LPG cylinders through the Ujjwala Yojana plan, announced Union Finance Minister Nirmala Sitharaman . Prime Minister Narendra Modi hailed the news, saying that his government puts the people first.
State responses to petrol and diesel excise cutbacks:
Maharashtra reduced the VAT on fuel and diesel by 2.08 per liter and 1.44 per liter on Sunday. According to a statement from the Uddhav Thackeray cabinet, it was mentioned that this cut would take effect immediately.
The Karnataka government 'would examine' further reductions in petrol and diesel prices in the state, said chief minister Basavaraj Bommai on Sunday, a day after the federal government lowered additional excise duties on both by 8% and 6% per litre, respectively.
Bommai mentioned that as he was going to Bengaluru for the World Economic Forum in Davos, "The (center's) decision came on Saturday night... let's see, we'll study it." he stated.
The chief minister, who is slated to lead the BJP in next year's assembly election, noted that in November 2021, Karnataka reduced its sales tax on gasoline and diesel by 13.30 per litre and 19.47 per litre, respectively.
In Tamil Nadu, where the DMK and its ally, the Congress, are in power, finance minister Palanivel Thiaga Rajan noted that Saturday's excise tax reductions only partially offset several price rises during the previous two years.
The AIADMK, Tamil Nadu's largest opposition party and a BJP ally has reminded the ruling DMK of its election promise to lower petrol costs.
Kerala has denied VAT cuts, but prices will still fall due to the central government's reduction - by $2.41 per litre for petrol and Rs 1.36 for diesel.
The state has expressed gratitude to the federal government for the rate drop, but the opposition Congress has demanded reductions of $20 and $26 per litre for gasoline and diesel, respectively, stating that central excise duty should be reduced to 2014 levels.
According to an industry stakeholder, after the Center lowered excise, petrol in Goa would now cost 97.17 per litre, and diesel will cost 89.74 per litre.
According to sources, VAT cuts are unlikely currently because doing so would 'harm the economy.'
Mayawati, the chief of the Bahujan Samaj Party in Uttar Pradesh, has called on the Yogi Adityanath government to announce a VAT cut, adding that it is "the state's responsibility."
Deepak Prakash, the Jharkhand BJP chairman and a Rajya Sabha MP has urged Chief Minister Hemant Soren to lower the VAT on petroleum items. Prakash charged that the state administration was politicizing the situation.
Assam has dropped fuel and diesel prices to 96.01 per litre and 83.94 per litre, the lowest in the country, according to chief minister Himanta Biswa Sarma. The reduction is based solely on a reduction in excise duty.
Also Read: Petrol, Diesel prices decrease in Guwahati, expected to decline further
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