BackPetrol, diesel prices today: Fuel rates remain steady in Mumbai, Delhi.Checklatest rates
PEtrol, diesel prices today: The Maharashtra administration on Sunday slashed the Value-added tax (VAT) on petrol and diesel. VAT on petrol has been slashed by ₹2.08 per litre and ₹1.44 per litre has been reduced on diesel
PremiumThe prices of petrol and diesel have remained unchanged for the second day on Tuesday after Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by 8 per litre, and 6 rupees per litre on diesel on Saturday.
The excise duty cut will translate into a reduction of ₹9.5 a litre on petrol in Delhi and ₹7 a litre in diesel after taking into account its impact on other levies. Petrol price in Delhi from today, when the excise cuts become effective, will cost ₹96.72 a litre as against ₹105.41 a litre currently while diesel will cost ₹89.62 a litre as opposed to ₹96.67 now.
The Maharashtra administration on Sunday slashed the Value-added tax (VAT) on petrol and diesel. VAT on petrol has been slashed by ₹2.08 per litre and ₹1.44 per litre has been reduced on diesel.
In Mumbai after the reduction of excise duty and VAT one litre of petrol will cost ₹111.35 and a litre of diesel ₹97.28. In Chennai, the petrol and diesel prices are at ₹102.65 and ₹94.24 per litre . In Kolkata, the price of petrol is ₹106.03 and diesel is ₹92.76 . In Bengaluru, one litre of petrol will cost ₹101.94 and one litre of diesel will cost ₹87.89. In Gurugram, one litre of petrol will cost ₹97.81 and ₹90.05 for one litre of diesel.
The central government imposes excise duty on petrol. Similarly, the state govt levies VAT ad valorem on fuel. VAT on petrol varies with each state. As centre has reduced the excise duty on diesel and petrol, the VAT automatically gets reduced.
The Centre's decision to cut excise duty on petrol and diesel will put pressure on the fiscal deficit which has been estimated at 6.4 per cent of GDP for the current financial year, experts said.
The tax reduction on petrol and diesel will lead to revenue loss of around ₹1 lakh crore per year for the government.
In her Budget speech on February 1, Finance Minister Nirmala Sitharaman had said the fiscal deficit in 2022-23 is estimated at 6.4 per cent of GDP, which is consistent with the broad path of fiscal consolidation announced by her last year to reach a fiscal deficit level below 4.5 per cent by 2025-26.
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