Fuel prices reduced by ₹5, liquor duty by 25% in poll-bound Assam

The BJP-led government’s price reduction will result in loss of ₹80 cr per month; Assembly polls are due in state in April-May

With the reduction, petrol in Assam will now cost ₹85.41/litre -- the lowest after Gujarat where it's ₹85.30/litre | Representative photo: iStock

The BJP-led government in poll-bound Assam headed by Sarbananda Sonowal on Friday (February 12) cut petrol and diesel prices by ₹5 and reduced duty on liquor by 25%. The new rates will come into effect from midnight.

Finance Minister Himanta Biswas announced the new rates in the Assembly during vote-in-account for six months. The minister said the decision would result in losses of nearly ₹80 crore per month.

“When the COVID-19 pandemic peaked, we had raised taxes on petrol and diesel. As the situation has improved, the state Cabinet has decided to withdraw the additional taxes on these fuels,” Sarma said.

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The petrol price in Assam was kept at ₹90.41/litre. With the reduction, it will cost ₹85.41/litre — the lowest after Gujarat where petrol price is ₹85.30 per litre.

Also read: Petrol, diesel near record highs as oil marketing cos hike prices after a month

The elections to the 126-member state Assembly are due in a few months. The state government’s decision came at a time when fuel prices have risen sharply across the country.

Ahead of the elections, Prime Minister Narendra Modi had granted over a lakh land titles to members of the state’s indigenous communities during his recent visit to the state. He had also inaugurated a host of development projects.

Currently, BJP has 61 MLAs in the Assam Assembly while ally AGP and an Independent have the rest of 75 seats. The Opposition has a strength of 33 with Congress having 19 seats and AIUDF 14. Others bagged 11 seats while seven seats remain vacant.

Also read: How duties on petrol are hiked when crude prices go up

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