Maharashtra to reduce petrol and diesel prices in Mumbai from July 1

The Maharashtra government has declared a decrease in fuel taxes in the Mumbai Metropolitan Region (MMR) during the presentation of the state Budget 2024. Deputy Chief Minister and Finance Minister Ajit Pawar announced that the government will lower the Value Added Tax (VAT), resulting in a reduction of 65 paise per litre for petrol and Rs. 2.60 per litre for diesel. The reduced fuel prices will come into effect from July 1, 2024.

Petrol & Diesel Prices Mumbai: Sales Tax Reduction

The price reduction will be implemented in the municipal areas of Brihanmumbai, Thane, and Navi Mumbai. Deputy CM Ajit Pawar said, "Tax on diesel is being decreased from 24 per cent to 21 per cent for Mumbai region, effectively ₹2 per litre less prices of diesel. In Mumbai region, tax on Petrol being decreased from 26 per cent to 25 per cent which will effectively decrease rates of petrol by 65 paise per litre."

The decision to reduce VAT is estimated to cost the state exchequer about ₹200 crore, as clarified by the minister. Meanwhile, fuel prices in other parts of Maharashtra will remain unchanged. The announcement does come as a relief for vehicle owners in the financial capital. The state is scheduled to have elections later this year to elect its state legislative assembly. The final dates for the state elections are yet to be announced.

Fuel Price Hike

The reduction also comes amidst other states increasing prices on petrol and diesel earlier this month. Both Karnataka and Goa raised fuel prices in June bringing a substantial hike on both petrol and diesel. Goa increases the VAT on petrol to 21.5 per cent, and 17.5 per cent on diesel. This resulted in a price hike of Rs. 1 per litre on petrol and 36 paise on diesel.

In Karnataka, the state government increased the sales tax on petrol by 29.84 per cent and on diesel by 18.44 per cent. Prices in Karnataka increased by Rs. 3 per litre for petrol and Rs. 3.5 per litre for diesel, with the government raising the sales tax on petrol by 29.84 per cent and on diesel by 18.44 per cent.

Fuel prices have remained largely unchanged and were expected to increase after the General Elections 2024 held in the first half of the year. More states are expected to revise petrol and diesel prices in the coming months.

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