Petrol, Diesel Tax Cut In West Bengal; Sitharaman Calls Petrol Price Vexatious Issue

With effect from 22 February, tax on petrol and diesel has been reduced by one rupee per litre in West Bengal. The state government has decided to reduce tax in a bid to provide relief to citizens amid a sharp hike in fuel rates. Petrol price in Kolkata stood at Rs 91.78 per litre on Monday and diesel was priced at Rs 84.56.

Bengal finance minister Amit Mitra said the state government has decided to reduce tax in a bid to provide relief to citizens amid a sharp hike in fuel rates.

"To reduce the common man's burden, the State Government has decided to allow rebate of Re 1 per litre on sales tax payable on sales of petrol and diesel w.e.f. the end of midnight of 22nd February, 2021 till 30th day of June, 2021," Mitra said in a tweet.

"The Centre earned Rs 32.90 per litre in taxes from petrol (on 20 February), while the state got around Rs 18.46 only. In case of diesel, the central government's earning was Rs 31.80 per litre as against about Rs 12.77 for the state," Mitra said separately according to a report by India Today.

Fuel rates in other major cities remained unchanged. Petrol prices per litre on 22 February stood at Rs 90.58 in New Delhi, Rs 97 in Mumbai and Rs 92.59 in Chennai. Diesel rates per litre were Rs 80.97 in New Delhi, Rs 88.06 in Mumbai and Rs 85.98 in Chennai.

Meanwhile, Union Finance Minister Nirmala Sitharaman said the steep rise in petrol prices is a very vexatious issue and referred to the various aspects involved in the pricing as a Maha Bayankar Dharma Sankatam (a huge and frightening moral dilemma), while responding to a question following a discussion on the Union Budget at the Chennai Citizen's Forum on Saturday.

"This is an issue in which no answer except reducing the price will convince anyone. I am treading on an area where whatever I may say to bring reality into the picture will only sound like I am avoiding the answer or shifting the blame," Sitharaman said.