Central govt reduces excise duty on petrol & diesel, few States slash VAT on fuel


New Delhi: The central government on Wednesday cut excise duty on petrol and diesel by record amounts of ₹5 and ₹10, respectively, per litre, to bring down their rates from the highest-ever levels.

Announcing the decision, a government statement said the Centre has also urged states to commensurately (in an equivalent measure) reduce the value-added tax (VAT) on petrol and diesel to give relief to consumers.

Here’s a list of states which have reduced petrol and diesel prices in their respective territories by bringing down the VAT attached to the fuel rates:


Uttarakhand has announced a reduction in VAT on petrol by ₹2 per litre in the state. With this, petrol prices in Uttarakhand are going down by ₹7 per litre.

Thanking the Union government for its decision to reduce the excise duty on fuel prices, Uttarakhand chief minister Pushkar Singh Dhami said on Wednesday that his government has decided to give the extra relief of ₹2 per litre on petrol (in addition to the ₹5 per litre relief provided by the Centre), thus making petrol cheaper in the state by ₹7 per litre.


The Karnataka government announced that it is going to reduce the VAT on both petrol and diesel prices by ₹7 per litre from November 4. Chief minister Basavaraj Bommai himself made the announcement on Wednesday, taking to his official handle on Twitter.


The Assam government, in consonance with the reduction in excise duty on part of the central government, has also announced a reduction in VAT on petrol and diesel by ₹7 per litre.

Earlier last month, Assam chief minister Himanta Biswa Sarma had said that the state government was ready to cut its share of taxes on fuel if the high rates continue for a longer period.


Goa chief minister Pramod Sawant also announced slashing the VAT by ₹7 on both petrol and diesel in the state.

He also expressed his gratitude to Prime Minister Narendra Modi for giving relief to the common man and helping control inflation.


Tripura announced that petrol and diesel will be cheaper by ₹12 and ₹17, respectively, per litre from November 4 as the state government provided a further relief of ₹7 per litre on the prices of both these fuels, in addition to the relief provided by the central government by reducing the excise duty.

Uttar Pradesh

Acting on the Centre’s plea to states to “commensurately reduce” VAT on petrol and diesel, the Uttar Pradesh government on Thursday said that the prices of diesel and petrol in the state will be reduced by ₹12 per litre each.


Gujarat government also announced on Thursday the implementation of the Centre’s decision and reduced prices of petrol and diesel by ₹7 per litre in the state.


Following the lead of other states, the Manipur government on Wednesday announced to reduce VAT on petrol and diesel by ₹7 each with immediate effect.

Manipur chief minister N Biren Singh, while welcoming Centre’s decision to reduce excise duty on petrol and diesel, tweeted, “Heartily welcome PM Narendra Modi Ji’s decision to reduce excise duty on petrol and diesel as a gift to the people of this nation on this Diwali.”

Petrol would now be cheaper by ₹12 per litre and diesel by ₹17 per litre in the state.

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