RBI Governor backs PM Modi’s pitch for states to reduce VAT on on petrol, diesel

News Network
June 8, 2022

New Delhi, June 8: Lending support to the Prime Minister Narendra Modi–led union government's pitch for states to reduce sales tax (VAT) on petrol and diesel, Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday said a cut in VAT on fuel will help soften inflationary pressures as well as expectations.

The central government had on May 21 cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 to after repeated hikes. At that time, it asked states to lower VAT to further provide relief. Almost no state reduced VAT.

Announcing the bi-monthly monetary policy, Das said a quick survey of urban households undertaken after the excise duty cuts on petrol and diesel on May 21 showed a significant moderation in their inflation expectations.

"In such a scenario, further reduction of State VATs on petrol and diesel across the country can certainly contribute to softening of the inflationary pressures as well as expectations," Das said.

Finance Minister Nirmala Sitharaman, at the time of announcing a reduction in excise duty, had urged states to reduce VAT. Her other cabinet colleagues including Oil Minister Hardeep Singh Puri made similar pleas.

But hardly any state reduced VAT after the May 21 excise duty cut announcement.

In April, Prime Minister Narendra Modi too had asked the states to lower their taxes to enable users to get the full benefit of the previous excise duty cuts of November 2021. Non-NDA party ruled states had not reduced VAT.

Post-November 2021 reduction in excise duty on petrol by Rs 5 per litre and that on diesel by Rs 10 a litre, 25 states and UTs had cut VAT to give further reprieve to consumers battered by record-high retail prices.

However, states ruled by non-NDA parties like Maharashtra, Andhra Pradesh, West Bengal, Kerala and Tamil Nadu had not reduced VAT.

"Many states like Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Kerala, and Jharkhand did not agree to our request for some reason or the other, and the burden on the people of these states continued," Modi had said on April 27.

"I am urging you that in the interest of the nation, please undertake what should have been done six months back in November. Give consumers in your state the benefit by lowering the VAT."

For a nation 85 per cent dependent on imports to meet its oil needs, the surge in international crude oil prices following Russia's invasion of Ukraine, together with food and commodities, has contributed to pushing the inflation rate to 7.8 per cent in April.

To control the spiralling prices, the Union Government reduced excise duty.

The two reductions - first in November 2021 and then in May 2022, roll back the Rs 13 and Rs 16 per litre increase in taxes on petrol and diesel effected between March 2020 and May 2020 to avoid passing on to consumers the sharp fall in international oil prices.

The excise duty hikes of 2020 had taken central taxes on petrol to their highest level of Rs 32.9 per litre and that on diesel to Rs 31.8 a litre.

After the latest excise cut, the incidence of central tax on petrol came down to Rs 19.9 a litre and that on diesel to Rs 15.8 per litre.

Central excise duty makes up for 20 per cent of the price of petrol, down from 26 per cent earlier. It now makes up 17.6 per cent of diesel price. After considering local sales tax or VAT, the total tax incidence on the price of petrol is 37 per cent and that on diesel is 32 per cent, down from 40-42 per cent earlier.

The excise tax on petrol was Rs 9.48 per litre when the Modi government took office in 2014 and that on diesel was Rs 3.56 a litre.

The government had, between November 2014 and January 2016, raised excise duty on petrol and diesel on nine occasions to take away gains arising from plummeting global oil prices.

In all, duty on petrol rate was hiked by Rs 11.77 per litre and that on diesel by 13.47 a litre in those 15 months that helped government's excise mop up more than double to Rs 2,42,000 crore in 2016-17 from Rs 99,000 crore in 2014-15.

It cut excise duty by Rs 2 in October 2017 and by Rs 1.50 a year later. But it raised excise duty by Rs 2 per litre in July 2019.

It again raised excise duty on March 14, 2020, by Rs 3 per litre each. The government on May 6, 2020, again raised excise duties by Rs 10 per litre on petrol and Rs 13 per litre on diesel.

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News Network
February 1,2026

Bengaluru, Feb 1: For travelers landing at Kempegowda International Airport (KIA), the sleek, wood-paneled curves of Terminal 2 promise a world-class welcome. But the famed “Garden City” charm quickly withers at the curb. As India’s aviation sector swells to record numbers—handling over 43 million passengers in Bengaluru alone this past year—the “last mile” has turned into a marathon of frustration.

The Bengaluru Logjam: Rules vs Reality

While the city awaits the 2027 completion of the Namma Metro Blue Line, the interim has been chaotic. Recent “decongestion” rules at Terminal 1 have pushed app-based cab pickups to distant parking zones, forcing weary passengers into a 20-minute walk with luggage.

“I landed after ten months away and felt like a stranger in my own city,” says Ruchitha Jain, a Koramangala resident. “My driver couldn’t find me, staff couldn’t guide me, and the so-called ‘Premium’ lane is just a fancy tax on convenience.”

•    The Cost of Distance: A 40-km cab ride can now easily cross ₹1,500, driven by demand pricing and airport surcharges.

•    The Bus Gap: While Vayu Vajra remains a lifeline, its ₹300–₹400 fare is often cited as the most expensive airport bus service in the country.

A National Pattern of Disconnect

The struggle is not unique to Karnataka. From Chennai’s coast to Hyderabad’s plateau, India’s airports tell a familiar story: brilliant runways, broken exits.

City:    Primary Issue   |    Recent Development

Bengaluru:    Cab pickup restrictions & distance  |    App-based taxis shifted to far parking zones; long walks and fare spikes reported

Chennai:    Multi-Level Parking (MLCP) hike  |    Passengers report 40-minute walks to reach cab pickup points

Hyderabad:    “Taxi mafia” & touting  |    Over 440 touting cases reported; security presence intensified

Mumbai:    Fare scams  |     Tourists charged ₹18,000 for just 400 metres, triggering police action

In Hyderabad, travelers continue to battle entrenched local groups that intimidate Uber and Ola drivers, pushing passengers toward overpriced private taxis. Chennai flyers, meanwhile, complain that reaching the designated pickup zones now takes longer than short-haul flights from cities like Coimbatore.

The ‘Budget Day’ Hope

As Finance Minister Nirmala Sitharaman presents the Union Budget 2026 today, the aviation sector is watching closely. With the government’s renewed emphasis on multimodal integration, there is cautious hope for funding toward seamless airport-metro-bus hubs.

The vision is clear: a future where planes, trains, and metros speak the same language. Until then, passengers at KIA—and airports across India—will continue to discover that the hardest part of flying isn’t the thousands of kilometres in the air, but the last few on the ground.

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Chandramohan
 - 
Friday, 6 Feb 2026

Sir, I request the airport authorities to introduce a free transport services from terminal 1 to terminal 2 as is very difficult for the passengers to reach terminal 2 along with their luggage. Also a trolley should be provided to reach the counter. Hope the authorities would help the passengers as soon as possible.

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News Network
February 4,2026

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Ghaziabad: In a tragic incident, three sisters aged 12, 14 and 16 died after jumping from the ninth floor of their apartment in Uttar Pradesh’s Ghaziabad in the early hours of Wednesday. The girls allegedly took the extreme step after becoming deeply obsessed with an online Korean task-based game.

The incident occurred around 2.15 am at a high-rise apartment complex in Bharat City. Before jumping, the sisters — Pakhi (12), Prachi (14) and Vishika (16) — left behind a handwritten note that read, “Sorry, Papa.”

According to police, the girls went to the balcony, bolted the door from inside and jumped one after another. Their screams and the sound alerted their parents, neighbours and security guards. By the time the parents broke open the balcony door, all three had died.

“When we reached the spot, we confirmed that three minor girls, daughters of Chetan Kumar, had died after jumping from the building,” said Assistant Commissioner of Police Atul Kumar Singh.

Visuals from the scene on Wednesday morning showed the bodies lying on the ground, their mother wailing in grief, and stunned neighbours gathering at the complex.

Police said the sisters were heavily influenced by Korean culture and were addicted to an online “Korean love game”, though no specific game has been identified so far. Investigators are examining an eight-page suicide note written in a pocket diary, detailing the girls’ mobile and gaming activities.

“Read everything written in this diary because all of it is true. I’m really sorry. Sorry, Papa,” the note said, accompanied by a hand-drawn crying emoji.

Their father, Chetan Kumar, told police that the girls had even adopted Korean names and had gradually withdrawn from school and daily activities. “They used to say, ‘Korea is our life, Korea is our biggest love. We cannot give it up,’” he said, breaking down.

Police said the parents had recently restricted the girls’ mobile phone usage, which may have triggered distress. “The investigation has not revealed the name of any particular game, but it is evident that the girls were deeply influenced by Korean culture, as mentioned in the suicide note,” said senior police officer Nimish Patel.

The sisters reportedly did everything together, including eating and bathing. Their gaming addiction is believed to have begun during the COVID-19 pandemic, after which they became irregular at school and eventually stopped attending altogether.

Police also revealed that Chetan Kumar is married to two sisters and lives with both wives and their children, all daughters. Two of the deceased girls were daughters of one wife, while the third was their half-sister.

Further investigation is underway.

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News Network
February 3,2026

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Dakshina Kannada MP Capt Brijesh Chowta has urged the Centre to give high priority to offshore wind energy generation along the Mangaluru coast, citing its strategic importance to India’s green energy and port-led development goals.

Raising the issue in the Lok Sabha under Rule 377, Chowta said studies by the National Institute of Oceanography have identified the Mangaluru coastline as part of India’s promising offshore wind ‘Zone-2’, covering nearly 6,490 sq km. He noted that the region’s relatively low exposure to cyclones and earthquakes makes it suitable for long-term offshore wind projects and called for its development as a dedicated offshore wind energy zone.

Highlighting the role of New Mangalore Port, Chowta said its modern infrastructure, multiple berths and heavy cargo-handling capacity position it well as a logistics hub for transporting and assembling large wind energy equipment.

He also pointed to the presence of major industrial units such as MRPL, OMPL, UPCL and the Mangaluru SEZ, which could serve as direct buyers of green power through power purchase agreements, improving project viability and speeding up execution.

With Karnataka’s peak power demand crossing 18,000 MW in early 2025, Chowta stressed the need to diversify renewable energy sources. He added that offshore wind projects in the Arabian Sea are strategically safer compared to the cyclone-prone Bay of Bengal.

Calling the project vital to India’s target of 500 GW of renewable energy by 2030, Chowta urged the Ministry of New and Renewable Energy to initiate resource assessments, pilot projects and stakeholder consultations at the earliest.

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