Petrol, Diesel Prices Fall Today After More States Announce to Cut VAT

New Delhi: Petrol and diesel prices on Friday saw a sharp decline as more states had announced VAT cuts. Several states joined the Centre in cutting down the fuel rates, which were at shocking highs in the recent past. Petrol, diesel prices saw their lifetime high before the Centre and the states announced excise cuts. On the eve of Diwali, the central government announced a cut in excise duty on petrol by Rs 5 per litre and diesel by Rs 10 per litre. The additional step by states also helped reduce the petrol and diesel rates, which witnessed relentless hikes over the recent months.

With this price reduction, petrol was priced at Rs 103.97 in Delhi. On the other hand, one litre of diesel cost Rs 86.67 after the excise cut. Petrol price in Mumbai was cut to Rs 109.98 per litre. Diesel price in the financial capital stood at Rs 94.14 for one litre after the price cut. In Kolkata, the price of one litre of petrol on Friday stood at Rs 104.67. On the other hand, the price of one litre of diesel was fixed at Rs 89.79. In Chennai, the petrol price was reduced to Rs 101.40 for one litre while the price of that amount of diesel stood at Rs 91.43. Petrol price in Bhopal was at Rs 107.23, while diesel price was at Rs 90.87.

The excise duty cuts on diesel and petrol will cost Rs 45,000 crore and lead to a 0.3 percentage point widening on the Centre’s fiscal deficit, a foreign brokerage said on Thursday. Wednesday’s excise cut in fuel rates was the highest-ever such reduction in history. “Government of India has taken a significant decision of reducing Central Excise Duty on Petrol & Diesel by Rs 5 and Rs 10 respectively. Prices of petrol and diesel will thus come down accordingly,” the finance ministry had said in a statement on Wednesday. “The Government of India has made efforts to ensure that there is no energy shortage in the country and that commodities such as petrol and diesel are available adequately to meet our requirements,” it added.