The effective price of petrol in Gujarat from mid-night on Tuesday.
Few days after Oil and Petroleum minister Dharmendra Pradhan's appeal to consider trimming down value added tax(VAT) on petroleum products,BJP-ruled Gujarat slashed VAT on fuel by 4%.
Making the announcement, Gujarat Chief Minister Vijay Rupani todaysaid: "After the central governments instructions, Gujarat has decided to reduce VAT on petrol and diesel by 4% from today mid-night."
The effective price of petrol in Gujarat from mid-night on Tuesday, October 10, will be Gujarat govt cuts VAT on petrol, diesel by 4% 66.53 per litre and that of diesel Gujarat govt cuts VAT on petrol, diesel by 4% 60.77 per litre, the chief minister added.
Because of this move, the state government will suffer a loss of Gujarat govt cuts VAT on petrol, diesel by 4% 2,316 crore annually.
“But we have taken this decision in the interest of people,” the Gujarat Chief Minister said.
Meanwhile, from October 4, the Government had reduced the basic excise duty rate on petrol and diesel (both branded and unbranded) by Rs 2 per litre.
The Finance ministry took to Twitter to announce the same.
The finance ministry also said that the move has been done to cushion the impact of rising international prices of crude petroleum oil and petrol and diesel on their retail sale prices. "Revenue loss on a/c of these reductions in excise duty is about Rs.26,000 crore in full year and Rs 13,000 crore in remaining part of the current financial year. This decision has also been taken by the Government of India in order to protect the interest of common man," the ministry tweeted.
Rising petrol and diesel prices, which went as high as Rs 80/litre for petrol in Mumbai and Rs 60/litre for diesel in Delhi, were hurting the political capital of the BJP and inflation was fast becoming a bogey on which the Opposition was unleashing one salvo after another.
If petrol and diesel prices would have been left unrestrained, BJP would have faced additional flak for contributing to a cheerless, inflation-marred Diwali. On that front, the government might have dodged a bullet.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Petrol Pump")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}