Petrol, diesel rates to come down in Maharashtra after Eknath Shinde announces VAT cut on fuel

New Delhi: Eknath Shinde, Chief Minister of Maharashtra, announced on Monday that the state government will lower the value-added tax (VAT) on fuel and diesel. Shinde informed the Legislative House that a decision to decrease VAT on fuel would be made in the state Cabinet once he won the floor test.

Petrol is now priced at Rs 111.35 per litre in Mumbai, while diesel is priced at Rs 97.28 per litre. The city of Mumbai has the highest petrol prices in the country. Read More: 

At the end of May, the Maharashtra government reduced the state-imposed tax on petrol and diesel by Rs 2.08 per litre and Rs 1.44 per litre, respectively. The action came after the central government announced a tax cut on fuel of Rs 8 per litre and diesel of Rs 6 per litre on May 21. The Union Finance Minister also asked states to follow suit by lowering state charges on car fuels. Read More: 

However, in April, the Opposition-ruled states rejected Prime Minister Narendra Modi's proposal to reduce VAT on fuel as a people-relief move. The opposition-ruled states have previously refused, claiming that it would have a significant detrimental impact on their earnings.

Last week, Finance Minister Nirmala Sitharaman stated that the government will examine the increased levies charged on oil, diesel, and ATF every two weeks based on world pricing. She said these as "extraordinary times." "and oil prices are uncontrollable on a global scale. "We do not want to impede exports, but rather improve domestic availability." "Sitharaman stated.

On the final day of the two-day extraordinary session of the House, Maharashtra Chief Minister Eknath Shinde won the key floor test. The motion of confidence was supported by 164 MLAs in the 288-member House, while it was opposed by 99. Three parliamentarians did not vote, while 21 legislators, including Ashok Chavan and Vijay Wadettiwar of the Congress, were missing during the trust vote.