Mnp CM announces cut in prices of petrol and diesel

Correspondent IMPHAL, AUG 21 | Publish Date: 8/21/2021 12:19:55 PM IST

Manipur chief minister N Biren Singh on Saturday announced a cut in the prices of diesel and petrol in the state.

The state government has decided to reduce the prices of diesel and petrol by around Rs four each per litre, Singh said, in his speech at a grand reception function of the five Olympiads of the state today.

If the state government cut the prices, petrol would cost around Rs 102.96 a litre while it would be Rs 90.64 for the diesel compared to the prices of the fuels in the state as on today. 

However, the cut in the prices of the fuels would be effective only after the state issues a notification, Singh said, and added it would be issued soon.

The chief minister said that the state cabinet has recently decided to cut the prices of the fuels after a thorough review to the current prices and prevailing socio-economic situation of the state in the wake of COVID-19 pandemic crisis.

The state government took the decision considering the plights of the commercial service vehicles, particularly passenger services vehicles, he said.

“The cut in the prices will certainly help reduce the burdens of the people due to the hike in the prices of fuels, particularly passenger service vehicles,” he said.

Although the chief minister claimed the demand for rolling back fuel price hike was behind the government decision, an official source said that the state government took the decision keeping in view of the low revenue collection from sale of petroleum fuel.

The prices of the fuel in the state were much higher compared to some neighbouring states which compelled inter-state service vehicles to avoid refilling their tanks in the state.

After the Centre hiked the prices of fuel, states like Meghalaya, Assam and Nagaland had cut down the VAT rate to give relief to their people.

As a result, inter-state service vehicles were buying fuel from other states which affected the sale volume as well as revenue collection from petroleum fuel in the state.

Transporters’ bodies have recently brought the matter to the notice of the state government.

The state was experiencing around Rs 50 crore reductions in revenue collection from the sale of petrol and diesel.

After due consideration to the matter coupled with the impact on revenue collection from petroleum products, the state finance department had recently issued a notification to reduce the value added tax (VAT) levied on diesel and petrol.

The notification stated reducing the VAT from present 22.5 per cent to 18 per cent on diesel and from 36.5 percent to 32 per cent on petrol, the source said.

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