The 12 states in charge of bad budgets are still not ready to reduce VAT on petrol and diesel

New delhi date. 06 November 2021 Saturday

For the first time since July this year, petrol has been selling below Rs 100 in 15 states and union territories since Thursday. Almost across the country, petrol had touched Rs 100 in the second week of July.

Petrol prices have now come down by Rs 100 in 15 states and union territories with BJP and opposition governments. This does not include Karnataka, Bihar and Madhya Pradesh as well as the Union Territory of Ladakh. The price of petrol here is more than Rs 100, despite tax cuts by the Center and the state.

The Centre's decision to reduce petrol prices by Rs 5 and diesel by Rs 10 on Diwali has brought a lot of relief to those battling inflation. The political atmosphere has heated up with the announcement of similar reduction in petrol and diesel prices. The country's 16 states and 7 union territories have decided to reduce VAT. 12 States and 1 Union Territory are not ready to make this reduction as doing so could hurt them financially.

The 13 states and union territories have not reduced VAT on petrol and diesel. Shiv Sena-NCP-Congress-ruled Maharashtra, AAP-ruled Delhi, TMC-ruled West Bengal, DMK-ruled Tamil Nadu, TRS-ruled Telangana, YSRCP-ruled Andhra Pradesh, Kerala, NPP-ruled, Meghalaya, Jammu and Kashmir-ruled, Jammu and Kashmir Andaman and Nicobar.

Odisha is the only state where there is an opposition government and where a reduction of Rs 3 per liter in VAT on both petrol and diesel has been announced.

Petrol is being sold at less than Rs 100 in Uttar Pradesh, Uttarakhand, Gujarat, Haryana, Assam, Chandigarh, Goa, Himachal Pradesh, Jammu and Kashmir, Sikkim, Arunachal Pradesh, Mizoram, Nagaland, Tripura and Pondicherry.

The reduction in petrol and diesel prices is expected to benefit the BJP and its allies politically. Petrol was just over 69 per liter in April 2020 and touched 90 levels in late March this year.

Different reductions in different states

Despite the reduction in prices by the Center and the state, petrol is being sold at more than Rs 100 per liter in almost all the states and Union Territories except UP and Haryana.

The biggest drop in petrol price has been in the Union Territory of Ladakh. Petrol price has come down by Rs 13.43 but petrol is still being sold at Rs 102.99.

Among the states, Karnataka, Pondicherry and Mizoram have witnessed the highest decline. Petrol price has been reduced by Rs 12.32 to Rs 13.35 per liter.

Thus, Ladakh has seen the biggest reduction in diesel at Rs 19.61. The highest reduction in diesel price in the state was in Karnataka where the price of diesel was reduced by Rs 19.49. Which is followed by Pondicherry and Mizoram.