The Maharashtra government had announced to reduce taxes on petrol and diesel in the Mumbai Metropolitan Region (MMR) during the presentation of the s
…
- The Maharashtra government had announced to reduce taxes on petrol and diesel in the Mumbai Metropolitan Region (MMR) during the presentation of the state Budget 2024.
In a relief to millions of vehicle owners in Mumbai, the state government has reduced the prices of petrol and diesel in the city from today (July 1). The price of both the fuel were revised following the state government’s decision to reduce value-added tax (VAT) it used to charge from customers earlier. On Friday (June 28), the Maharashtra government announced that it will reduce VAT on both fuel in the Mumbai Metropolitan Region from July 1. The announcement came during the presentation of the state’s budget for the ongoing financial year.
The decision to cut down on VAT on petrol and diesel led to reduction in price of both fuel. The state government’s decision on reducing VAT on diesel has helped to reduce overall tax on the fuel to 21 per cent. For petrol, the reduction of VAT brought down the share of tax to 25 per cent of the overall retail price. A reduced VAT on petrol brought down the price of the fuel by 65 paise per litre. Petrol price in Mumbai from today stands at ₹103.44 for a litre. Meanwhile the price of diesel in the city has gone down further by Rs. 2.60 per litre. One can buy a litre of diesel in Mumbai at ₹89.97.
Also Read : Goa hikes petrol and diesel prices. Check new rates.
Price of petrol in Mumbai still remains one of the highest among the major cities across India despite the recent price drop. Some of the other cities where petrol costs more are Kolkata ( ₹103.94 per litre), Hyderabad ( ₹107.41 per litre), Pune ( ₹104.08 per litre) and Jaipur ( ₹105.71 per litre).
Diesel price in Mumbai after a drop of ₹2.60 per litre has gone down below the ₹90-per litre mark for the first time in a while. Buying a litre of diesel is now more affordable than cities like Chennai, Kolkata, Hyderabad among others.
Goa, Karnataka hike petrol and diesel prices
The petrol and diesel price reduction in Mumbai comes days after Goa and Karnataka increase the price of fuel. In June, the Goa state government increased the VAT on petrol to 21.5 per cent, while the VAT on diesel was increased to 17.5 per cent. Petrol in Goa now costs ₹96.37 per litre, while diesel is priced at ₹88.14 per litre.
In Karnataka, Goa’s neighbouring state, the government hiked petrol and diesel prices by revising the sales tax. For petrol, Goa increased sales tax by 29.84 per cent effectively making it costlier by ₹3 per litre. Diesel attracted 18.44 per cent sales tax, increasing the price by ₹3.5 per litre. The cost of petrol in Bengaluru now stands at ₹102.84 per litre while diesel price now stands at ₹88.95 per litre.
First Published Date: 01 Jul 2024, 14:02 PM IST
