Good news on Diwali ! Price of petrol and diesel reduced further in Odisha, See details

Bhubaneswar: The government of Odisha has reduced the value-added tax (VAT) by Rs 3 per litre on petrol and diesel prices on the occasion of Diwali today, announced chief minister Naveen Patnaik. This comes after a day the Central government reduced excise duty on petrol and diesel.

Reportedly, the new prices of petrol and diesel will come into effect from midnight of November 5.

Earlier on Wednesday, the central government reduced excise duty by Rs 5 on petrol and Rs 10 on diesel prices. The production cost of diesel has been reduced by twice the amount as compared to petrol price.

In view of this reduction, the loss of VAT revenue to state exchequer will be to the tune of Rs 1400 Cr. per annum. This is in addition to loss in VAT collection @ Rs. 1.6/ litre on petrol and Rs. 2.8/ litre on diesel, total amounting to Rs 700 Cr., which the state is likely to incur in view of Excise duty reduction by Government of India.

Hence the total loss to state exchequer on account of reduction in VAT is approximately Rs. 2000 Cr. but is going as a major relief to the people of Odisha. With this reduction, the petrol & diesel prices in the state is likely to be one of the lowest in the country.

Last year in 2020, the excise duty on petrol was increased from Rs 19.18 per liter to Rs 32.09 per liter. The fall in petrol price has brought much needed relief to consumers.

Since last few days the people of Odisha had expressed their dissatisfaction over the continuous rise in fuel prices.

It is pertinent to mention that today the cost of petrol has been recorded at Rs 104.73 per litre while the diesel price has been recorded at Rs 107.57 per litre today. The cost of petrol has decreased by Rs 6.52 Paisa and the diesel price has increased by 18 Paisa in the last 24 hours.

Meanwhile, the price of petrol in the national capital is recorded at Rs 103.97 per litre (up by Rs 6.7 Paisa) while the price of diesel is at Rs 98.42 per litre.

The major oil refiners such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum revise the fuel rates on a daily basis, by taking into account the crude oil prices in the international markets, and the rupee-dollar exchange rates.