[Pancham]

Originally Posted by klgiridhar

Some states have started their price reductions now.

Attachment 2227666

This is misleading. What does it mean when they say state governments have started reducing the prices? Is this in addition to the excise? VAT part gets automatically reduced because of decrease in excise. Similar announcement from Assam Government.

[airbus]

Assam and Karnataka announced reduction of VAT on petrol and diesel.

Tweet by Assam CM:



Tweet by Karnataka CM:

[nettooran]

Originally Posted by Geo_Ipe

On a lighter note...

My friend owns a petrol pump. He took stock today evening. A straight loss of 2.5 lakhs in a day. He was having a happy time for a few months. All those bonus in price savings lost in a day .

[SoumenD]

Originally Posted by Bibendum90949

Price was very well within 70 Rs in June 2020. This is a Shell receipt, so the average price should've been 65 Rs.

Another one in March 2020 is attached too.

You are right. I see in may 2020 it was ~66. Just checked the trend in same link I shared. So diesel prices were actually sane till last year. Only lately its gone crazy

[IamNikhil]

No indication of any duty reduction in Maharashtra yet. Keeping fingers crossed that we get some relief in Mumbai in coming days atleast!

[MaxTorque]

Any reduction is welcome. Some bitter results in bypolls made them to take this decision. As usual media is potraying as Diwali gift.

[PrasannaDhana]

For a perspective,

Diesel price in my city in January 2021 was 80 rs/litre

Diesel price today was 103 rs/litre

The same government which increased the Diesel prices by 23 rupees in 10 months, is now posing to be so generous & kind, talking about the welfare of farmers & about reducing inflation by cutting down less than what they have increased over the last 10 months.

They believe we are all gullible fools to take this stunt as a Diwali gift.

Now someone will use his radio time to shout loudly that only states being ruled by his party has given a VAT cut, and other states are anti-people. People will not forget who hiked the prices at the first place.

I don't really know if I should be happy about this price cut. A 10 rupees price cut will be nullified by a 30 days of 30 paise daily price hike. Meaning, this Diwali gift can be taken back within a month.

[abhijet.sen]

Originally Posted by Pancham

This is misleading. What does it mean when they say state governments have started reducing the prices? Is this in addition to the excise? VAT part gets automatically reduced because of decrease in excise. Similar announcement from Assam Government.

There is nothing misleading in it unless one wants to treat it that way. Many states have reduced their VAT on top of duty cuts by central government. So expect a cumulative more than Rs 10 decrease for petrol and more than Rs 15 for diesel in those states.

Although I reckon this is coming too late and moreover, they should bring these products under GST.

[AirbusCapt]

Originally Posted by AirbusCapt

The argument put forth by certain government ministers hinges around two things: a) previous oil bonds b) the money government spent/intends to spend on covid and vaccination.
I am sure those with a basic knowledge of economics will realise that this increasing of taxes to mop up revenue can't be played out till infinity. Increase in oil prices will directly impact overall spending, reduction in household savings, consumer spending and will eventually spill over into a self created recession.
Now if the government is smart they will realise this and perform a fine act of balancing and drastically reduce fuel taxes a year before election to lap up votes.
The big mystery is: why is the opposition silent? This is a golden chance to kick the government in the nuts (politically speaking) and they are letting a good crisis go to waste.

As I had predicted, the government has promptly lowered prices on Diwali eve (just before state elections). After they got drubbed in certain polls, their eyes opened.
This drama will keep on playing until 2024

[NerdSpeaks]

Good news :
As per latest news, Govt has reduced Excise duty by 5/- & 10/- for petrol & diesel respectively, which would reduce prices across all states.
Link to the news.
https://www.thehindu.com/business/Ec...26942.ece/amp/

[carboy]

Originally Posted by IamNikhil

No indication of any duty reduction in Maharashtra yet. Keeping fingers crossed that we get some relief in Mumbai in coming days atleast!

It's reduction in Union Taxes. So it will be seen in every city & every state. But prices will still be as high as they were a couple of months back.

[fawad0222]

Mates cheer up, for whatever reasons the prices have come down, they are lower now which matters finally. Hope the trend continues.

[Meph1st0]

Originally Posted by airbus

Tweet by Karnataka CM:

Attachment 2227695

That's quite a reduction from 104.5 to 81.5. Time to fill up ASAP.

Originally Posted by PrasannaDhana

For a perspective,

Diesel price in my city in January 2021 was 80 rs/litre

Diesel price today was 103 rs/litre

Crude oil price was below $50 in Jan 2021 and now it is $83.xx
I don't think excise duty by central govt. or vat by state govt. were increased during this time frame. Well, the vat collection by states would have gone up from Jan to Oct since these are based on percentages and the base price got increased due to higher crude price.

[girishv]

The prices in Karnataka has come down further. Petrol in Karnataka will cost less than 100 and diesel just above 80.

[carboy]

Originally Posted by girishv

The prices in Karnataka has come down further. Petrol in Karnataka will cost less than 100 and diesel just above 80.

Attachment 2227718

Part of that 7 Rs decrease is automatic - since VAT is a percentage. Since the price before VAT went down, the VAT automatically went down. The right way to present this data is to present it as state reduced VAT from x% to y%.

Unfortunately, our journalists are also complicit in this (also doesn't help that they are probably not smart enough to understand how state & union taxes work). Each article I looked at presented the states decrease as Rs. 7 rather than as a percentage.

Union Taxes are flat - so is presented as Rs X. State taxes are Ad Valorem & hence a journalist should be presenting it as State VAT Rate has been decreased from x% to y%.