After the centre announced a reduction in excise duty on fuel prices, media reports state that the MVA government currently has no intention to reduce the Value Added Tax (VAT) on petrol and diesel.
Fuel prices were down for first time in a week after Centre on Wednesday (November 3) announced a reduction in excise duty on fuel prices. Oil companies passed on a record reduction in excise duty rates to consumers.
In Mumbai, petrol price has been cut by Rs 5.87 to Rs 109.98 per litre and diesel by Rs 12.48 to Rs 94.14 per litre. Kolkata saw the price of diesel being reduced by Rs 5.82 to Rs 104.67 per litre and that of diesel by Rs 11.77 to Rs 89.79 per litre.
Petrol price on Thursday was cut by Rs 6.07 per litre and diesel price by Rs 11.75 in Delhi .
Buckling under pressure, the government had on Wednesday cut excise duty on petrol by Rs 5 per litre and that on diesel by Rs 10 a litre to give reprieve to consumers battered by record high retail fuel prices.
Since states charge local sales tax or VAT not just on the base price but also on the excise duty levied by the centre, the total incidence of price reduction is higher.
Petrol will cost Rs 103.97 per litre in Delhi against Rs 110.04 per litre, according to a price notification of state-owned fuel retailers.
Diesel rates accordingly will reduce to Rs 86.67 per litre from Rs 98.42 per litre.
Petrol price in Chennai has been reduced by Rs 5.26 to Rs 101.40 per litre and diesel by Rs 11.16 to Rs 91.43 per litre.
