Meghalaya to cut petrol, diesel prices by Rs 2.50 per litre

Days after the Centre announced cut in petrol and diesel prices after reducing excise duty by Rs 1.50 a litre, the Meghalaya cabinet on Wednesday approved a proposal to reduce the fuel prices by Rs 2.50 a litre. The move may cost the state Rs 15 crore annually. 

"The cabinet is pleased to approve a proposal to introduce a rebate on the price of petrol and diesel by Rs 2.50 per litre with effect from tomorrow (October 11), also in line with the decision of the central government," Deputy Chief Minister Prestone Tynsong told reporters after the cabinet meeting in Shillong.

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On October 4, the government announced a Rs 2.50 per litre cut in the fuel prices.Tynsong said it was a bold decision taken by the state government considering the cut will imply a loss of Rs 15 crore to the states exchequer annually. Tynsong, however, said that the state government has instructed revenue generating departments like Excise, Registration and Taxation, Forest and Mining departments to raise tax collection to mitigate the losses.

Soon after the announcement, many states including Madhya Pradesh, Rajasthan, Uttar Pradesh, Chhattisgarh, Bihar and Maharashtra had announced an additional concession on the fuel prices.

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The Delhi government, however, has refused to reduce value added tax (VAT) on the fuel price, saying that the state government is already running in loss and, therefore, cannot reduce the taxes.

"The state believed in the Centre over the implementation of the Goods and Services Tax (GST) implementation, with a hope that Prime Minister Narendra Modi would take care of states' interests. But, now when the Centre says it has hiked prices of petrol and diesel by Rs.10, but the profit is going to the Centre. However, if it reduces the rates by Rs. 1.5, states are expected to cut down the price by Rs. 2.5," Deputy Chief Minister Manish Sisodia said.

(With PTI inputs)