The state government has reduced Value Added Tax (VAT) on diesel and petrol, thereby bringing down the price of fuel by approximately Rs 7 per litre.
Chief Minister Conrad K Sangma today informed that the reduction of VAT on petrol from 31.62 per cent to 20 per cent or Rs 15 per litre (whichever is higher) will bring down the price to Rs 85.86 per litre from Rs 91.26.
With the previous Rs 2 per litre price reduction, this means that the cost of a litre of petrol at the pump has fallen by Rs 7.40 per litre in recent weeks.
VAT on diesel has also been reduced from 22.95 per cent to 12 per cent or Rs 9 per litre (whichever is higher). A litre of diesel will now cost Rs 79.13 per litre.
The Chief Minister said that his government decided to reduce the price keeping in mind the problems faced by the people and despite the fact that Meghalaya is facing a financial crunch.
“This is being done primarily to ensure that the consumers are not affected by the high prices. In the past we have always maintained the competitive pricing with Guwahati and Assam in order to ensure that our sales are not affected,” he added.
He made no mention of the ongoing transport strike, where one of the demands of commercial vehicle owners and drivers is that the price of fuel be reduced.
Sangma said that the government was hopeful that the reduction in price will boost demand for petrol and diesel, which will help the state recoup what it has lost by cutting the VAT rate. In the last financial year fuel taxes brought in Rs 326 crore and the figure stood at Rs 451 crore until the end of January.
