With effect from June 15, 2017, like in international markets India also followed daily price revision model based on international crude oil prices. And at a time when against the earlier trend, oil prices overseas have seen a sudden spurt in pricing, government is trying to cushion its impact for its local customers.
And as the decision to include petroleum products under GST saw no resolution, states have begun with VAT rate cuts and so far Maharashtra, HP, Uttarakhand and Gujarat have followed the suit in the direction.
Know the VAT rate cut in these states with impact on fuel prices, here.
The Narendra Modi led government has also cheered consumers by incentivizing payment for fuel digitally by using the BHIM App. So after excise duty cut, retail Vat cut, if you happen to make the payment towards your fuel purchase via BHIM you are eligible for an additional discount of 49 paise for a litre of petrol purchase and 41 paise for a litre of diesel purchase.
The excise duty for both petrol and diesel was made by Rs. 2 per litre even after the government denied any attempt in the direction as centre's exchequer needed funds to finance its capital investments. But a call in the direction was made as soon as petrol price in Mumbai cornered close to Rs. 80 mark.