Rajasthan government made petrol 4 and diesel cheaper by 5 rupees per liter

Photo: PTI

Rajasthan government made petrol 4 and diesel cheaper by 5 rupees per liter


  • Public will get relief due to reduction in the price of petrol and diesel.
  • State government will suffer annual revenue loss of Rs 3500 crore.
  • Approval also to provide free land for airport in Kota.

Jaipur: Petrol diesel has become cheaper in Rajasthan. The state government has decided to reduce the rate of VAT. The new rates will be applicable from midnight tonight. Giving information on the reduction in the price of oil, Chief Minister Ashok Gehlot said that in the cabinet meeting today, a unanimous decision was taken to reduce the rate of VAT on petrol/diesel. After this, from 12 o’clock tonight, the rates will be reduced by Rs 4 per liter in petrol and Rs 5 per liter in diesel. Due to this the state government will bear the loss of annual revenue of Rs 3500 crore.

Approval also to give free land for airport in Kota

The Rajasthan Council of Ministers met here on Tuesday night to take several decisions including reduction in Value Added Tax (VAT) on petrol and diesel and approval to provide free land for an airport in Kota. According to the statement issued after the meeting, the State Council of Ministers chaired by Chief Minister Ashok Gehlot approved the reduction of VAT by Rs 4 per liter on petrol and Rs 5 per liter on diesel. According to this, despite a possible reduction of Rs 1800 crore in the state’s revenue due to the reduction in excise duty on petrol and diesel by the Central Government in the past, the Council of Ministers has taken this decision keeping public interest paramount.

It is noteworthy that earlier this year also, the state government had given relief to the people of the state by reducing VAT on petrol and diesel by two percent. Thus the state government is already facing a revenue loss of Rs 2800 crore and with today’s decision taken in the council of ministers, this revenue loss will increase to Rs 6300 crore annually. It was told in the meeting of the Council of Ministers that due to the continuous increase in the prices of petrol and diesel by the petroleum companies, the relief given by the Central and State Governments to the common man is decreasing.

The central government has consistently reduced basic excise duty on petrol and diesel since 2016 and reduced the share of the “divisible pool” to be shared with the states. Due to this, the share of the states has come down, while the special and additional excise duty has been increased continuously. According to the statement, it was also informed in the meeting that more than 22 percent of the total tax revenue of the state comes from VAT on petrol and diesel.

Due to Corona epidemic, there has been a huge reduction of 20 thousand crore rupees in the revenue of the state till October in the current financial year. According to this, a major reason for this is the non-availability of GST reimbursement of Rs 5,963 crore by the Center to the state. At the same time, the Council of Ministers has approved the amendment in the Land Allocation Policy-2015 for various purposes in the urban areas of Rajasthan. With this decision of the cabinet, under the Social Security Promotion Scheme-2021, free land to non-profit organizations for activities related to the welfare of women, disabled, boys and girls, senior citizens, homeless, transgender, drug addicts and people living with HIV. allocation can be made.

The cabinet has also approved allotment of land free of cost for the proposed airport at Kota. With this development, Kota as an educational and industrial city will be able to connect with the inter-state air. Along with this, approval was given to allot 75.9379 hectares of state land conditionally to Powergrid Ramgarh Transmission Limited, Jaisalmer for the construction of 400 KV power sub-station at village Nimba and Mandai of Fatehgarh tehsil.

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