State cuts Value-Added Tax on fuel by Rs. 2 per litre

State cuts Value-Added Tax on fuel by Rs. 2 per litre

State cuts Value-Added Tax on fuel by Rs. 2 per litre

The new rates of petrol and diesel will come into effect from tomorrow morning, orders for the same will be issued later today.

Fuel prices continued to rise further on Monday with petrol being sold in Delhi at Rs 80.73 and diesel being sold at 72.83 per litre.

Petrol price per litre in Jaipur were hovering around Rs 81 at fuel stations on Monday, down from the recent Rs 83/litre price. From thereon, there has been some fluctuation, with both hike and cut in prices up till today, when it touched Rs 90.05.

Condemning the statement of the union petroleum minister Dharmendra Pradhan that the petroleum prices were increased due to hike petroleum prices in worldwide market and increase in Value-Added Tax by state governments, Naidu said such statements were far from truth and were aimed only to mislead the people.

Offices were opened on time and official work was not affected at the Delhi Secretariat due to Bharat bandh, an official said.

This is a protest against the wrong policies of PM Narendra Modi which has also led to the rupee reaching record lows, said Leader of Opposition Ramesh Chennithala.

Mumbai has the highest tax rates among the metros.

Nearly half of the retail selling price of the two fuels is made up of central and state taxes. AP gets Rs 22.15 per litre on petrol and Rs 16.87 on diesel.

The government, he said, anticipates that worldwide oil prices, which together with a drop in the value of rupee has been fuelling the fuel price rise to record levels, will moderate in coming days to take pressure off. The spike in prices has renewed calls for cut in excise duty but Finance Minister Arun Jaitley has remained non-committal, saying global oil prices are volatile and have not shown any linear movement.

Petrol and diesel prices saw a hike of 14 paise per litre in Delhi.

Amidst protests and national bandh by the opposition parties on Monday, the Telugu Desam Party government in Andhra Pradesh, an ally of BJP-led NDA government till March, has announced slashing the petrol and diesel prices by Rs 2 a litre.

This is the biggest increase in rates in any fortnight since the daily price revision was introduced in mid-June previous year.

The fuel rates have been on fire since mid-August, rising nearly every day due to a drop in rupee value and rise in crude oil rates.

TDP had opposed the demand of the opposition parties to bring the fuel products under the ambit of GST, claiming that fuel products were among the major contributors of tax revenues for the states.

Related news