Nagaland govt reduces taxes on petrol & diesel; Petroleum minister explains price hike

As fuel prices continue to surge all across India, the Nagaland government on Monday has reduced taxes on petrol, diesel, and other motor spirits. The tax rate for diesel has been cut down from Rs 11.08 to Rs 10.51 per liter or 17.50 percent to 16.50 percent per liter, the notification said. This Notification came into force with effect from midnight of February 22. 

Cabinet Minister for Petroleum & Natural Gas and Steel Dharmendra Pradhan has said, "There are two main reasons behind the fuel price rise. The international market has reduced fuel production & manufacturing countries are producing less fuel to gain more profit. This is making the consumer countries suffer. We have continuously been urging the OPEC & OPEC+ countries that it should not happen. We hope there will be a change."

He added, "For this, Centre & state governments collect the tax. Spending on development work will generate more jobs. Govt has increased its investment & 34% more capital spending will be done in this budget. The state govt will also increase spending. This is why we need this tax but there is also the need for balance. I believe Finance Minister can find a way."

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Petrol & Diesel Prices In India

Petrol and diesel prices are continuously increasing for more than 10 days and in some states, the price of petrol has even crossed Rs 100. Opposition parties have been holding protests in different parts of the country over the rise of prices of diesel and petrol.

A day after Madhya Pradesh, Maharashtra and Rajasthan witnessed the highest petrol price with people paying Rs 98.64 per liter, Rs 97.30, and Rs 97.10 respectively, the rates remained the same on Tuesday, while the diesel prices also did not change. The fuel rates in India are revised on a day-to-day basis at 6 am every day, so all the dealers and petrol stations in the country are updated with the latest rate, even if it is a minute's variation in oil prices globally. The variation in the price of per barrel crude majorly reflects the high or low in petrol rates. Compared to February 22, the price for per barrel crude that was $59.25 has risen to $61.69 that is 4,467.39 in Indian rupees, on Tuesday.

As of now, it is uncertain as to when the common man will be relieved from the mounting hike in petrol prices. However, Union Finance Minister Nirmala Nirmala Sitharaman said that the Centre and States will reach a consensus after a discussion, to derive a solution for the rising petrol rates.

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