- The central government gave relief by reducing taxes
- There is not much impact on the monthly budget.
Narendra Modi’s government in the Center has tried to bring relief to ordinary people by reducing excise duties on gasoline and diesel. Despite this, the truth is that there has not been much difference in people’s monthly budget. Speaking of the Delhi figures, people’s budget is only 27 days behind. That is, the amount of money they had to spend on gasoline 27 days ago. Today I have to spend so much.
It is significant that the central government announced a reduction of the excise duty of Rs 5 on gasoline and Rs 10 on diesel. After the reduction of excise duties, the price of gasoline in Delhi is 103.97 rupees per liter on November 5 and the price of diesel is 86.67 rupees per liter in Delhi. So far, the Delhi government has not announced any VAT reduction.
Before this, if we talk about the tariff around it, on October 9th, the prices of gasoline and diesel in Delhi were around 103.84 rupees per liter of this tariff. Similarly, if we talk about diesel, after reducing the rate, now the diesel in Delhi is 86.67 rupees per liter. At the beginning of June too, diesel was in this range. After that, the price of diesel continued to rise.
how much difference
Let’s understand the difference with a case study. Krishna Kumar’s office, who lives in Laxmi Nagar, Delhi, is about 20 km away in Noida, UP. They have to fill about 20 liters of gasoline to travel to and from the office in a month and for other needs around the house on the weekends. Now, if 103.97 rupees are added according to the rate, then your spending for the whole month will be around 2080 rupees. Even if we look at the rate of 103.84 on October 9 about a month ago, even then his spending was almost the same.
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Before this tax cut, gasoline in Delhi cost Rs 110.04 per liter. If 20 liters of gasoline were filled in a month at this rate, 2,200 rupees would have to be spent. That is, even after reducing the rate, the total difference in a month’s budget is only 120 rupees.
So many changes happened in UP
On the other hand, the budget has lagged a bit in those states, where the state government has also reduced VAT, but the difference is not much. For example, the government of Yogi Adityanath in UP has announced that it will reduce VAT on gasoline by 7 rupees and on diesel by 2 rupees per liter. With this, gasoline has become Rs 95.28 per liter there. This means that if someone spends 20 liters of gasoline in a month at this rate, then their budget will be around 1900 rupees. This is only Rs 180 less per month than Delhi. Not only this, it is also equivalent to the cost of a person in Lucknow in June, when gasoline was around Rs 95 per liter.