Gujarat: Taking Centre’s cue, state cuts fuel prices by another Rs 2.50 per litre

Earlier in the day, Union Finance Minister Arun Jaitley announced a cut in petrol and diesel prices by Rs 2.50 per litre, factoring in excise duty reduction of Rs 1.50 per litre.

By: Express News Service | Ahmedabad | Published: October 5, 2018 12:49:40 am
fuel prices, petrol prices, gujarat fuel prices, petrol price cut, diesel price cut, fuel price cut, excise duty cut, vat on fuel, excise duty on fuel, petrol taxes, diesel taxes, taxes on fuel, gujarat news, indian express The new prices will come into effect from midnight.

On a day when the Central government cut fuel prices by Rs 2.50 per litre, the Gujarat government followed suit Thursday by reducing VAT (Value Added Tax) on fuel, thereby bringing down the prices of a litre of petrol and diesel in the state by Rs 5.

The new prices will come into effect from midnight.

Announcing the relief, deputy Chief Minister Nitin Patel said the state government has reduced Rs 2.50 from the VAT imposed on both the fuels. This reduction is expected to lower the state government revenues by an estimated Rs 1,800-2,000 crore.

Earlier in the day, Union Finance Minister Arun Jaitley announced a cut in petrol and diesel prices by Rs 2.50 per litre, factoring in excise duty reduction of Rs 1.50 per litre.

“Finance Minister Sh @arunjaitley Ji has announced Rs 2.5 cuts in petrol & diesel prices. Reciprocating positively to FMs announcement, the Govt of Gujarat has also decided to reduce Rs 2.50 on both petrol & diesel. Thus petrol & diesel would be Rs 5 cheaper in the state of Gujarat,” Chief Minister Vijay Rupani tweeted.

As on Thursday, petrol prices in Ahmedabad stood at Rs 82.97, while diesel cost Rs 80.85 per litre.

The last time Gujarat government had reduced VAT was in October 2017 before the Assembly elections, when VAT was lowered by four per cent. Thereafter, if prices of petrol are taken into consideration, per litre costs have zoomed by over 23 per cent in the last one year.

Vadodara Gas Ltd hikes PNG price

The Vadodara Gas Ltd (VGL), a joint venture between GAIL India Limited and Vadodara Municipal Corporation on Thursday increased the price of its piped natural gas by Rs 3.26, which will come into effect from October 1. The price hike was a result of increase in the basic price of administered pricing mechanism (APM) gas by the Central government.

 

For all the latest Ahmedabad News, download Indian Express App