Bhubaneswar: In the wake of the Central Government’s decision to reduce excise duty on petrol and diesel by Rs 10 per litre, the main opposition Biju Janata Dal (BJD) on Friday demanded a reduction in the VAT imposed by the Odisha government on fuel, noting that the ruling BJP had made similar demands when it was in the Opposition.

In a press statement, BJD spokesperson Dr Lenin Mohanty on Friday stated that due to the ongoing conflict between Israel, the United States, and Iran, a global fuel crisis has emerged, creating uncertainty among the public regarding the availability of petrol, diesel, and cooking gas.

He further noted that although the government has repeatedly assured citizens that there is no crisis of fuel and essential items, such assurances have failed to dispel public concerns.

Meanwhile, the regional party alleged that although the excise duty on petrol and diesel has been slashed by Rs 10 per litre, the Central government has not clearly explained the reasons behind this reduction.

“There is a possibility that supply disruptions may lead to a price rise. It is being speculated that the government has reduced excise duty in advance to avoid public backlash in case of price hikes. Ensuring uninterrupted fuel supply has now become the biggest challenge for the government,” alleged Mohanty.

He further stated that if the Chief Minister is genuinely committed to ensuring smooth supply of petrol, diesel, and cooking gas for the people of the state, then he should reduce the VAT imposed by the State Government.

The senior BJD leader also emphasised that when the BJP was in the Opposition in the state, it had repeatedly demanded a reduction in VAT on petrol, diesel, and cooking gas.

“It is also significant that among all states, Odisha imposes one of the highest VAT rates on petrol and diesel. While Odisha levies 28% VAT, Maharashtra and Madhya Pradesh levy 25% each, and Rajasthan levies 19%. Therefore, instead of merely welcoming the Centre’s routine decision to reduce excise duty, the State Government should reduce VAT in the interest of the people of Odisha,” demanded Mohanty.