Himachal Pradesh government hikes VAT on diesel by Rs 3 per litre

On Sunday, the Himachal Pradesh government increased the value-added tax (VAT) on diesel by Rs 3 per litre. However, the hike differs depending on different fuel stations across the state. With the vat going up from Rs. 4.40 to Rs. 7.40 per litre, a litre of diesel in Himachal Pradesh would cost Rs 86. On the other hand, the government reduced the taxes on petrol by 0.55 paise per litre. The dynamic fuel price system, as of June 2017, involves daily revisions to the price of fuel in India. As per today’s data, a litre of petrol costs Rs 97.58 in Himachal Pradesh.

Fuel prices across Indian states depend on different variables such as dealer commission, excise duty, and value-added tax (VAT). Once the additional charges are added, the retail selling price of gasoline practically gets doubled. Though the Centre mostly controls fuel prices in India, the state government has the power to bring modifications in some areas as per their convenience. As different states have their own VAT applied to fuel prices, the overall cost varies from state to state.

The revision in the fuel rates came out on the same day when the Himachal Pradesh cabinet was expanded with the induction of seven new ministers. The previously-appointed cabinet headed by Sukhvinder Singh Sukhu was just four weeks old. The fresh inductees included Vikramaditya Singh who is also the son of former chief minister Virbhadra Singh. The strength of the cabinet grew to nine after the induction of seven new members. Governor Rajendra Vishwanath Arlekar administered oath to the newly appointed ministers in a brief ceremony organised at the Raj Bhawan.

Every day at 6 am, Indian oil marketing corporations changes the price of petrol and diesel after considering the oil prices on the international market. The price of petrol and diesel in major cities in India has remained largely the same for months. The last significant revision that affected the fuel rates across the entire nation came in May 2022 when the central government reduced the excise duty on gasoline and diesel by Rs. 8 per litre and Rs. 6 per litre, respectively.

Quick Reads

View All

Are record gold prices Trump's curse or gift to investors?

BOJ data suggests Japan did not intervene in yen market after Friday’s currency spike

Petrol and diesel are currently priced per litre in Delhi at Rs. 96.72 and Rs. 89.62, respectively. A litre of petrol currently costs Rs 106.31 in Mumbai, while the same amount of diesel costs Rs 94.27. In Kolkata, the cost of a litre of petrol is Rs. 106.03, and the price of a litre of diesel stands at Rs. 92.76.

Read all the Latest News, Trending News,  Cricket News, Bollywood News,
India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.