Petrol Price Relief: Rajasthan, Andhra and West Bengal cut VAT on fuel

After clear indication from central government to remain firm on excise duty levied on petrol and diesel, Rajasthan, Andhra Pradesh and West Bengal intervened to lower excise duties.

Rajasthan was the first state to announce tax reduction on Sunday. The govt reduced taxes worth 30% to 26% on petrol and 22% to 18% on diesel leading to decline in prices of both fuels by ₹2.5 per litre. Andhra Pradesh and West Bengal followed the footsteps to reduce fuel prices by ₹2 per litre and ₹1 per litre respectively.

With elections coming next year, other state governments are under pressure to reduce fuel prices. Karnataka Chief Minister H.D. Kumaraswamy has mentioned that the state might be next in the row to cut prices.

The fuel prices are highest in Maharastra and lowest in Andamar Nicobar islands because of difference in state taxes, transportation cost and central excise duty in each state. Reportedly, petrol is costliest (₹90.2) in Parbhani, Maharashtra, 500 km from Mumbai.

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