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Diesel and LPG price: Kerala, Punjab, Himachal Pradesh, Uttarakhand and Delhi reducing VAT and other levies, Maharashtra and Meghalaya likely to follow  

More states reduce diesel, LPG price

NEW DELHI: Steps by states to soften the impact of the fuel and LPG hike on common man gained momentum on Monday with Kerala, Punjab, Himachal Pradesh, Uttarakhand and Delhi decreasing their prices after reducing VAT and other levies. Maharashtra and Meghalaya are also likely to follow suit. With the hike last Friday generally coming in for sharp criticism, finance minister Pranab Mukherjee wrote to all chief ministers asking them to reduce state levies on diesel, kerosene and LPG in line with the duty cuts undertaken by the Centre so as to provide some relief to the common man. The states cutting across party lines which have taken the decision have sacrificed revenue by reducing Value Added Tax (VAT) and other levies on petroleum products. West Bengal and Haryana have already reduced prices of some petroleum products since the fuel hike last Friday.

LPG cylinders in Delhi will cost Rs 40 less for BPL and Antyodaya families and diesel 37 paise less per litre for all, Kerala brought down diesel price by 75 paise per litre. Himachal Pradesh exempted kerosene oil from VAT and reduced the tax on diesel to 9.70 per cent from the present 14 per cent. Besides, there would be 'zero' VAT on kerosene oil, a relief of 13.5 per cent while reduction in VAT on diesel would be 4.30 per cent. Uttarkhand announced to waive VAT on kerosene, and would not charge the tax on the amount increased for diesel and LPG after the hike. Similarly, Punjab exempted VAT on the hiked amount of diesel and LPG. This will make diesel cheaper
by 25 paise a litre and LPG by Rs 2.50.


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