Amidst the skyrocketing prices of petrol-diesel, Tamil Nadu has reduced its price by three rupees per liter. Tamil Nadu Finance Minister P Thyaga Rajan announced this in the state budget. This will put a burden of Rs 1,160 every year on the state exchequer of Tamil Nadu. Before this cut, petrol was being sold in Chennai for Rs 102.49 per liter.
After this decision of Tamil Nadu, it is expected to cut the prices of petrol and diesel in other states as well. People say that Tamil Nadu can reduce petrol prices, then why not other states. In fact, the public is already bearing the financial burden due to COVID-19. Unemployment has increased and inflation is increasing. In such a situation, why can’t oil prices be cut to give them relief.
Non BJP states can reduce oil prices
In view of this decision of Tamil Nadu, soon non-BJP states can cut the price of petrol and diesel. Jharkhand, Chhattisgarh, Punjab, Rajasthan, Kerala, Odisha and West Bengal are prominent among such states. However, the economic condition of these states is not very good and they would not like to give up the income of heavy tax imposed on petrol and diesel. Nevertheless, if the common people increased the pressure and if it became a political issue, then the price of petrol and diesel can be cut in BJP ruled states too. Government oil companies have not increased oil prices for the last 28-29 days. Before the elections in UP in 2022, the government no longer wants to let it become a big political issue.
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How much VAT on petrol and diesel in which states?
Rajasthan has the highest VAT on Petrol-Diesel at 36 percent. In Karnataka 35, Telangana 35.20 and Odisha 32 percent VAT is levied on petrol and diesel. At present, it is selling above Rs 100 per liter in 19 states and union territories of the country.