Gasoline and diesel prices after excise tax cuts in Delhi, Mumbai and other cities

Fuel Prices Cut In Maharashtra: Petrol By Rs 5, Diesel By Rs 3

The state cabinet today decided that petrol in Maharashtra will cost Rs 5 and diesel at Rs 3. The state cabinet decided that petrol would cost Rs 106 per litre in Maharashtra and diesel Rs.94 in Mumbai. Slight  variations are possible as there are other components at play when oil companies set the daily price. 

Eknath Shindde, chief minister of the State, said that while the annual reductions in Value Added Tax will incur a cost to the state at Rs.6,000 crore per year it will also reduce overall inflation.

The decision is as political as it is financial — the new government was formed just two weeks ago after Eknath Shinde led a mutiny in the Shiv Sena that displaced Uddhav Thackeray’s Shiv Sena-NCP-Congress government. Soon after proving majority in the assembly, Mr Shinde had announced last week that VAT on fuel would be reduced.

Devendra Fadnavis, Deputy Chief Minister of Shiv Sena-BJP said that the Shiv Sena government is committed to the welfare of people. Mr Shinde claims his faction — which has majority of the MLAs with it — is the Shiv Sena, but Mr Thackeray has been fighting that, saying that MLAs alone aren’t the party as a whole. At least in the assembly, Shinde has been able to gain an advantage.