New Delhi: After the Centre cut excise duty on fuel to bring rates down from all-time highs, petrol and diesel prices stayed unchanged for the second day in a row. Petrol is at Rs 103.97 in Delhi, while diesel remains at Rs 86.67.
On the eve of Diwali, the government lowered excise duty on petrol and diesel by Rs 5 and Rs 10, respectively. At least 22 states and union territories responded by lowering their VAT rates in various degrees.
Following this, on November 4, petrol prices across the country were reduced by Rs 5.7 to Rs 6.35 per litre, and diesel prices by Rs 11.16 to Rs 12.88, as oil companies passed on a record fall in excise duty rates to customers.
Petrol and diesel rates in Mumbai remained unchanged at Rs 109.98 per litre and Rs 94.14 per litre, respectively.
In Kolkata, the rates of petrol and diesel remained steady at Rs 104.67 per litre and Rs 89.79 per litre, respectively.
A litre of petrol was sold in Chennai for the same price of Rs 101.40. The price of diesel remained unchanged at Rs 91.43 a litre.
The excise tax drop was the largest reduction in excise duty in history. It reverses a portion of the Rs 13 and Rs 16 per litre rise in fuel and diesel taxes implemented between March and May 2020 in order to avoid passing on to customers the dramatic drop in world oil prices at the start of the COVID-19 pandemic.
That hike in excise duty had taken central taxes on petrol to their highest level of Rs 32.9 per litre and that on diesel to Rs 31.8 a litre.
After the Centre’s announcement, many states announced a cut in VAT rates.
Petrol price has been further reduced by as much as Rs 8.7 per litre and diesel by Rs 9.52 in BJP ruled states and UTs – from Ladakh to Puducherry – as they matched the central government’s announcement of a cut in excise duty with slashing of local sales tax (VAT) rates.
The states and UTs that extended additional VAT benefits include Karnataka, Puducherry, Mizoram, Arunachal Pradesh, Manipur, Nagaland, Tripura, Assam, Sikkim, Bihar, Madhya Pradesh, Goa, Gujarat, Dadra & Nagar Haveli, Daman & Diu, Chandigarh, Haryana, Himachal Pradesh, Jammu & Kashmir, Uttarakhand, Uttar Pradesh and Ladakh.