Union Petroleum Minister Dharmendra Pradhan has stated that it is now up to the State Governments and Union Territory administrations to reduce the prices of petrol and diesel in their respective territories. “Though the Centre has slashed the excise duty on petrol/diesel, its prices remain uncontrolled as most States/UTs are not in favour or reducing VAT on them,” Pradhan clarified yesterday.

Prices of petrol/diesel have been rising alarmingly because of less production by crude oil making countries. The rise in price is also attributed to the ever-increasing need for the same. During last October, the Centre reduced the excise duty on petrol and diesel by Rs.2 and appealed to States/UTs to reduce Value Added Tax (VAT) on the fuel products so that their overall price can come down drastically.

BJP-ruled States such as Maharashtra, Madhya Pradesh, Gujarat and Himachal Pradesh followed the Centre’s diktat and have reduced VAT on petrol and diesel; however, States such as Tamil Nadu, Kerala, Telengana and Andhra Pradesh where regional parties are in power haven’t done so stating that their overall revenue would be affected drastically if they did so.

Speaking to newsmen, Pradhan said that on its part, the Centre had reduced the excise duty on petrol/diesel and requested the States/UTs to slash VAT on them.  “Only a few States heeded our request while many States didn’t pay attention to our request for fear of losing out revenue,” he said and renewed his appeal to the States and UTs to consider slashing VAT on petrol/diesel.