Bhubaneswar, Oct 4: Union Petroleum and Natural Gas Minister Dharmendra Pradhan today appealed to all state governments to reduce the VAT on petrol and diesel as the Centre had reduced the prices by Rs.2.50 a litre.
Addressing newsmen, Mr Pradhan said the state government had also responsibility towards the poor and the middle class people and reduce the VAT on petrol and diesel to give them relief. The Union Minister said he was told the Maharastra and Gujrat government have also reduced the VAT and appealed to Odisha Chief Minister Naveen Patnaik to reduce the VAT if he was concerned about the poor and middle class people.
In a major relief to consumers, petrol and diesel prices were reduced by Rs 2.5 a litre each, Union Finance Minister Arun Jaitley announced in New Delhi today. Pradhan said while the centre has cut the excise duty of Rs.1.5 on petrol and diesel ,the oil marketing companies have reduced the prices by Rs.1 per liter.
The impact on the oil marketing companies on account of the reduction of the oil prices would be around Rs.7000 to Rs.8000 crore,he said. The Union Minister said for last one and a half month the country has been facing a serious crisis with the increasing devolution of the money against dollar and the Iran-USA conflict triggering a hike in the oil prices.
The Centre,he said, had in the past reduced excise duty of Rs 2 per liter on petrol and diesel and now it again decided to go for tax intervention and further reduced it by Rs.2.50 per liter. The state governments, Mr.Pradhan hoped, will also reciprocate and announce the reduction of VAT on petrol and diesel in their respective states to provide further relief to the poor and the middle class people.(UNI)