To reduce the burden on the pocket of the public, the Maharashtra government has announced to cut the price of petrol and diesel.
Chief Minister Eknath Shinde informed after a cabinet meeting that the government has decided to reduce Value Added Tax (VAT) on petrol by Rs 5 per liter and on diesel by Rs 3 per liter.
This will make petrol cheaper by Rs 5 per liter and diesel by Rs 3 per liter.
State government will lose Rs 6,000 crore due to tax cut
Deputy Chief Minister Devendra Fadnavis said that this decision will put an additional burden of Rs 6,000 crore on the state government.
He said that this decision to cut the price of petrol and diesel is part of the commitment of the BJP-Shiv Sena government towards the public interest.
Taking to Twitter, he said, “Big relief to Maharashtra and Marathi manush… This is the first step in the direction of Prime Minister Narendra Modi’s appeal to give benefit to the common people.”
After proving his majority, Shinde promised to reduce VAT
After proving his majority in the assembly earlier this month, Chief Minister Eknath Shinde had promised to reduce VAT to price petrol and diesel. Now he has fulfilled his promise.
Now what is the price of petrol and diesel in Maharashtra?
Before this change, the price of a liter of petrol in Maharashtra’s capital Mumbai was Rs 111.35, while diesel was being sold at Rs 97.28 per litre.
Now after the reduction of Rs 5, the price of petrol in the city will be Rs 106.35 per liter, while after the deduction of Rs 3, the price of diesel will be Rs 94.28 per liter.
There has been no increase in the price of petrol and diesel in Mumbai since the beginning of this month.
People are worried about the high prices of petrol and diesel
Explain that the public is suffering from the high prices of petrol and diesel and it has played an important role in reaching the record level of inflation.
After a gap of about four months, the prices of petrol and diesel started increasing in the country in March and then within just 16 days their price had increased by Rs 10.
With this increase, the price of petrol had crossed the Rs 100 mark in most of the states.
Central government gave relief by cutting excise duty in May
The central government in May decided to reduce excise duty on petrol and diesel amid criticism over rising prices . Due to this the price of petrol was reduced by Rs 9.5 and diesel by Rs 7 per liter.
The central government had also appealed to the state governments to reduce the tax on fuel . Implementing this appeal, almost all the states had reduced the tax. The then Maharashtra government also reduced the tax.