23 states lower VAT rates on petrol, diesel after Centre's excise duty cut

Twenty-three states and union territories have cut value-added tax (VAT) on petrol and diesel after the Centre lowered excise duty on auto fuels on Wednesday.

According to an official statement, states that reduced fuel prices the most were Karnataka, followed by Puducherry and Mizoram.

On a per litre basis, petrol has reduced by Rs 13.35 in Karnataka, by Rs 12.85 in Puducherry, and by Rs 12.62 in Mizoram. Similarly, the price of diesel has reduced by Rs 19.49 per litre in Karnataka, followed by Puducherry (Rs 19.08) and Mizoram (Rs 18.34).

Thirteen states continue to hold on to existing VAT rates, including large states like Rajasthan, Maharashtra, Odisha, Chhattisgarh, Delhi, West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Kerala, Meghalaya, Andaman & Nicobar, Jharkhand, and Punjab have also held back VAT cuts.

On Wednesday evening, the Centre had announced a reduction in excise duty on petrol by Rs 5 a litre and diesel by Rs 10 a litre. The move came into effect from Thursday morning, bringing down the retail price of petrol in the national capital to Rs 103.97 a litre and diesel to Rs 86.67 a litre.