After govt reduces excise duty, states slash VAT on fuel


After the Centre reduced excise duty on fuel on Wednesday, several BJP-ruled states announced a further reduction of Rs 7 per litre on Value Added Tax (VAT) on both petrol and diesel. The Centre reduced the excise duty on petrol by Rs 5 and that on diesel by Rs 10, to be effective from Thursday.


In a tweet late in the evening, Goa Chief Minister Pramod Sawant wrote, “The Modi Govt. has given a great Diwali gift to all Indians by announcing reduction in Excise Duty on Petrol and Diesel… In addition, Government of Goa shall reduce an additional Rs 7 on Petrol and Rs 7 on Diesel, thereby reducing the price of diesel by Rs 17 per litre and petrol by Rs 12 per litre.”


Assam announced a reduction in VAT on both the fuels by Rs 7 per litre with immediate effect. Chief Minister Himanta Biswa Sarma announced the state government’s decision on Twitter. “Heartening to learn Central Govt decision to reduce excise duty on petrol and diesel. In consonance with the decision of Honble PM @narendramodi, I am pleased to announce that Assam Govt will also reduce VAT on petrol and diesel each by Rs 7/- with immediate effect,” he said. On October 29, Sarma had said his government was ready to cut its share of taxes on fuel if the high rates continue.


A statement from Gujarat Chief Minister Bhupendra Patel’s  office said the state government has decided to reduce the VAT on petrol/diesel by Rs 7 per litre in the state following Central government decision to reduce excise duty on it.

Tripura Chief Minister Biplab Kumar Deb tweeted, “Following Hon’ble PM Shri @narendramodi Ji led central govt’s decision on reduction of excise duty on petrol & diesel, #Tripura govt has also decided to reduce petrol & diesel cost by Rs 7 from tomorrow…After today’s decision Petrol & Diesel will cost Rs 98.33/lt & Rs 85.63/lt respectively in Agartala.”


Announcing his government’s decision, Manipur Chief Minister N Biren Singh tweeted, “Heartily welcome PM @narendramodi Ji’s decision to reduce excise duty on petrol & diesel as a gift to the people of this Nation on this Diwali. I’m also please to announce that the Govt. of Manipur will also reduce VAT on petrol and diesel each by Rs 7/- with immediate effect.”


Petrol price on Thursday was cut by Rs 6.07 per litre and diesel price by Rs 11.75 in Delhi as oil companies passed on a record reduction in excise duty rates to consumers.


Chief Minister Basavaraj Bommai announced that his government was reducing the cost of petrol and diesel by Rs 7 from Thursday evening. “Even though, it will mean a loss of Rs 2100 crore to our exchequer, it will bring down the prices for our citizens to 95.90 & 81.50 (Approx.) for Petrol and Diesel respectively,” he tweeted.

Uttar Pradesh 

The Uttar Pradesh government on Thursday said that the prices of diesel and petrol in the state will be reduced by 12 per litre each.



The Haryana government has announced that it will decrease the prices of both petrol and diesel by Rs 12 per litre.


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