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.
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| Sheila Dixit |
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.
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