Maharashtra govt reduces VAT on petrol, diesel in Mumbai region. Check new prices

The government said that it is reducing VAT on diesel from 24% to 21% and from 26% to 25% on Petrol for Mumbai and Navi Mumbai.

The Maharashtra government on Friday announced its decision to reduce Value Added Tax (VAT) on diesel and Petrol for the Mumbai region.

A worker holds a nozzle to pump petrol into a vehicle at a fuel station in Mumbai. (Reuters/File)

Deputy chief minister Ajit Pawar, while tabling the state Budget for 2024-25, said the government is reducing 24% to 21% of VAT on diesel for Mumbai, Navi Mumbai and Thane region.

“Tax on diesel is being decreased from 24% to 21 % for Mumbai region, effectively 2 rupees per litre less prices of diesel,” Pawar, who holds the finance portfolio, said in his budget speech. “ In Mumbai region, tax on Petrol being decreased from 26% to 25% which will effectively decrease rates of petrol by 65 Paise per litre.”

At present, the price of petrol in the Mumbai is ₹104.21 per litre, and the cost of diesel is 92.15 per litre. The new prices, once effective, will be ₹90.15 for diesel and ₹103.56 for petrol.

In his Budget speech, Ajit Pawar also announced a financial assistance scheme entailing a monthly allowance of ₹1,500 to eligible women in the age group of 21 to 60 years in the state.

Pawar said the scheme "Mukhyamantri Majhi Ladki Bahin Yojana", will be implemented from July, four months ahead of the state polls which are due in October.

"We are announcing Mukhyanantri Majhi Ladki Bahin. Under this, all women will be given ₹1500 per month. The scheme will be implemented from July 2024," the deputy chief minister said.

The government will make an annual budgetary allocation of ₹46,000 crore will be made for the scheme, he added.

Pawar also announced free three gas cylinders annually per household under the Mukhyamantri Annapurna Yojana. About 52,16,412 families will benefit from the move, he said.