Maharashtra reduces petrol prices by ₹5 per litre, diesel by ₹3 per litre

Reducing VAT on fuel prices will bring a burden of ₹6,000 crore on the state exchequer but CM Eknath Shinde said he will ensure it won’t hamper developmental works

In a major relief to commuters, the Maharashtra government on Thursday reduced the VAT (Value Added Tax) on fuel prices thereby slashing petrol and diesel price by ₹5 and ₹3 respectively.

After the reduction, petrol will now be sold for ₹111.35 per litre while diesel will be sold for ₹97.28 per litre. (File image)

Chief minister Eknath Shinde made the announcement after the state cabinet meeting and said the decision will give relief to people from inflation.

After the reduction, petrol will now be sold for ₹111.35 per litre while diesel will be sold for ₹97.28 per litre.

“After reducing the central excise duty on fuel prices, the prime minister had urged all the states to reduce their taxes on petrol and diesel to provide more relief to the people. Though many states had slashed the prices, Maharashtra did not take the decision. Today, we have decided to bring down VAT by ₹5 per litre and ₹3 per litre on petrol and diesel respectively,” the chief minister said.

The decision will also provide relief from inflation because it will help in reducing transport cost of the goods, he added.

Reducing VAT on fuel prices will bring a burden of ₹6,000 crore on the state exchequer. Shinde said they will plan the financial burden in such a way that it will not hamper the development projects.