Latest Car News in India

Monday, July 01, 2024

By Kamal Swami

Fuel Prices To Slash In Mumbai From July 1, 2024

The Maharashtra government has announced a reduction in fuel taxes in the Mumbai Metropolitan Region (MMR) during the state Budget 2024 presentation. Deputy Chief Minister and Finance Minister Ajit Pawar revealed that the Value Added Tax (VAT) on fuel will be reduced to 65 paise per litre reduction for petrol and a Rs. 2.60 per litre reduction for diesel. The new prices will be effective from July 1, 2024.
It is reported that the new prices will be applicable in the municipal areas of Brihanmumbai, Thane, and Navi Mumbai. In the words of Deputy CM Ajit Pawar, "Tax on diesel is being decreased from 24 per cent to 21 per cent for the Mumbai region, effectively reducing diesel prices by ₹2 per litre. In the Mumbai region, tax on petrol is being decreased from 26 per cent to 25 per cent, effectively lowering petrol prices by 65 paise per litre." This decision is expected to put the burden of Rs 200 crore on the state government as clarified by the minister. Fuel prices in other parts of Maharashtra will remain unchanged. The announcement provides relief for vehicle owners in the financial capital. The state will hold elections later this year to elect its legislative assembly, although the final dates are yet to be announced.
Fuel Price Hike in Other States
The reduction in Maharashtra comes amid price increases in other states. Earlier this month, Karnataka and Goa raised fuel prices. Goa increased the VAT on petrol to 21.5 per cent and on diesel to 17.5 per cent, resulting in a price hike of Rs. 1 per litre for petrol and 36 paise for diesel. In Karnataka, the state government raised the sales tax on petrol to 29.84 per cent and on diesel to 18.44 per cent, leading to an increase of Rs. 3 per litre for petrol and Rs. 3.5 per litre for diesel. Fuel prices had remained largely unchanged and were anticipated to rise after the General Elections 2024, held in the first half of the year. It is believed that other states will also follow the trend in the coming months.

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