Just a week ago, the central government had increased the prices of petrol in the country. The decision brought immense pressure on the state governments as to do something in order to give some relief to the citizens. The best thing that a state can do something about the price of petrol is to decrease the tax on the same. In this way, due to lesser tax, the price of petrol will automatically in a particular state.
Showing the willingness to give relief to its citizens from the increased prices of petrol, the Delhi Government, led by Sheila Dixit, has taken am welcome step by decreasing the value added tax (VAT) on petrol. This will decrease the price of petrol in Delhi. Therefore, at every filling, the petrol users will have to less than what they used to pay after the prices were increased by the central government.
However, at the same time, the Dixit government has increased the VAT on the compressed natural gas (CNG). Due to this, the prices of CNG have increased by a little less than 2 rupees in Delhi. It is assumable that by decreasing the prices of petrol and increasing the prices of CNG, the Dixit government has tried to maintain the balance in the state income from these two important fuel commodities.
With the central government’s declaration that there would be no immediate increase in the prices of other fuel commodities such as kerosene, diesel, and LPG, and of course, by the Dixit government’s balancing act, it can be discerned that the two governments have tried to control a volatile situation that had developed after the price rise was declared. However, both the governments are reminded and urged to make a plan so that in future, the prices of all fuel commodities decrease and there is not price rise.