- Northern states reduce taxes on petrol and diesel
- Tariff exemptions are available in West Bengal, Rajasthan, Assam and Meghalaya
- Crude oil prices have risen more than 60 percent since November
At the same time, fuel prices in these states are higher compared to the national capital, Delhi. But diesel prices in Meghalaya are now lower than in Delhi.
West Bengal reduces VAT on petrol and diesel by Rs 1 per liter VAT was reduced on February 21. Meghalaya has reduced petrol prices by Rs 7.40 per liter and diesel by Rs 7.10 per liter. This is the biggest tax cut.
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Kovid Ses, which was imposed on Assam Petrol in this year’s elections, has withdrawn. With this, the additional tax of Rs 5 per liter of petrol was waived. Rajasthan is the first state to cut VAT on petrol and diesel – from 29 per cent to 36 per cent on January 29.
In Delhi, a liter of petrol was priced at Rs 90.58 and diesel at Rs 80.97. In February alone, petrol was priced at Rs 4.28 and diesel at Rs 4.49. Crude oil prices have risen more than 60 percent since November. At the same time, it is noteworthy that the government has not reduced retail fuel prices despite the sharp fall in crude oil prices in the country. In fact, a liter of petrol and diesel retails at Rs 31 and Rs 33 respectively. The rest are taxes levied by the Central and State Governments.