Maharashtra state cabinet has decided to reduce the retail price of petrol and diesel from tomorrow by Rs. 5 and Rs. 3, respectively. From July 15, petrol will be retailed at Rs. 106, while diesel will be retailed at Rs. 94 in Mumbai. However, nominal variation in fuel prices is prices is possible since oil companies set the daily retail price in different zones, given that other components such as transportation also affect the retail prices of fuel. Having said that, Chief Minister Eknath Shinde said that the cut in Value Added Tax (VAT) will cost the state Rs. 6,000 crore a year, but it will bring down overall inflation.
Chief Minister Eknath Shinde said that the cut in Value Added Tax (VAT) will cost the state Rs. 6,000 crore a year.
The reduction in central excise duty, announced by Finance Minister Nirmala Sitharaman, had brought prices down by around Rs. 9.5 per litre for petrol, and Rs. 7 per litre for diesel. It was one in a series of moves to counter surging prices of essentials. Sitharaman had then said, “I wish to exhort all state governments, especially the states where reduction wasn’t done during the last round (November 2021), to also implement a similar cut and give relief to the common man.”
Soaring fuel prices has been a huge concern especially in states like Maharashtra where taxes are generally on the higher side. The decision comes as a big relief for Maharashtra’s general public and also helps Maharashtra’s newly appointed Chief Minister- Eknath Shinde in making a strong political statement.