More states reduce diesel, LPG price

New Delhi, Jun 27 (PTI) 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 (value
added tax) 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.