Cabinet reduces VAT on fuel

Shillong, Nov 5:The state cabinet has approved reduction of VAT on fuel.

“Today, the cabinet has reduced tax from 20 per cent to 13.5 per cent per litre on petrol and on diesel, the reduction is from 12 pc to 5 pc”, the deputy chief minister Prestone Tynsong told reporters on Friday after the cabinet meeting.


The tax on petrol and diesel was reduced by Rs 5.20 from Friday midnight.

However, Assam and other Northeastern states had reduced the fuel price by Rs 7.

First, the Centre had reduced excise duty on petrol & diesel by Rs 5 and Rs 10 respectively from November 4.

Tynsong said, “In line with the advice of the Government of India, the state government has taken a decision that further reduction on the prices of petrol & diesel has to be implemented immediately from midnight”.

The state government had earlier reduced the value added tax (VAT) to 20 percent on petrol and 12 percent on diesel, Tynsong said.

He said the price of petrol and diesel in the state is the lowest in the country.

The price of petrol in Guwahati, Assam is Rs 94.58 per litre after reduction while in Meghalaya’s Byrnihat it is Rs 92.38 per litre and in Shillong Rs 93.91 per litre, he added.

In the similar way, the price of diesel in Guwahati is at Rs 81.29 per litre while in Byrnihat at Rs 79.41 per litre and Shillong at Rs 80.57 per litre.

“Therefore, the total relief on petrol is Rs 10.95 per litre in Byrnihat and Rs 11.08 per litre in Shillong while for diesel, the total relief is Rs 16.67 per litre in the entire state of Meghalaya,” he said.

According to Tynsong, due to the reduction in price of fuel, the state will incur a revenue loss of about Rs 100 crore for the next five months from November to March 31, 2022. 

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