Petroleum minister asks non-BJP state governments to cut VAT on petrol, diesel

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New Delhi: A day after the union cabinet approved a Rs-200 cut on domestic LPG cylinders, union minister for petroleum and natural gas Hardeep Singh Puri has asked states with non-BJP governments to cut the value added tax (VAT) on petrol and diesel. In an interview to CNBC-TV18, he said that the Centre lowered the excise duty on the transport fuels in November 2021 and May 2022, which was followed by reduction in VAT by BJP-ruled states. "The BJP central government and states reduced their excise on two occassions, November 2021 and May 2022.

All the BJP states reduced their VAT so I think it stands to reason that the non-BJP states should now bring down their VAT. They have been increasing it, Punjab increased it," he said. He further said if the non-BJP state governments also follow suit and reduce VAT, the minister would push for further effort by the Centre to reduce petrol, diesel prices.

"We always like to meet our friends and collaborators at least half way and I think more such happy decisions as ones being announced by the prime minister, once the non-BJP states reduce their VAT. I will become an advocate for further reduction provided the non-BJP states do their job first and they we will step in to see what more can be done if the results are good," he said. The statement comes as the government has been criticism from the opposition over elevated petrol, diesel prices although international crude prices have significantly declined from the multi-year high levels over the past one year.