BJD demands VAT reduction on petrol, diesel in Odisha

The Biju Janata Dal (BJD) on Friday (March 27, 2026) demanded that the State government reduce Value Added Tax (VAT) on petrol and diesel following the Centre’s decision to cut excise duty by ₹10 per litre.

BJD spokesperson Lenin Mohanty said the ongoing conflict involving Israel, the United States and Iran has triggered concerns of a global fuel crisis, leading to uncertainty among the public over the availability of petrol, diesel and cooking gas.

“Although the government has repeatedly assured that there is no shortage, such assurances have failed to ease public anxiety. In this context, the Centre has reduced excise duty on petrol and diesel by ₹10 per litre. However, the reasons behind this decision have not been clearly explained,” he said.

Mr. Mohanty added that there is speculation that the move was made in anticipation of possible price hikes, to avoid public backlash. “Ensuring uninterrupted fuel supply has now become the government’s biggest challenge,” he remarked.

Criticising Chief Minister Mohan Majhi for merely welcoming the Centre’s decision, the BJD leader said, “if the Odisha CM is genuinely committed to ensuring smooth supply of petrol, diesel and cooking gas, he should also reduce the VAT imposed by the State government.”

BJD leader Priyabrata Majhi pointed out that Odisha levies one of the highest VAT rates on fuel. “While Odisha imposes 28% VAT, Maharashtra and Madhya Pradesh levy around 25%, and Rajasthan about 19%. Instead of a routine welcome, the State government should reduce VAT in the interest of the people,” he said.

Mr. Majhi further added that when the BJP was in the Opposition, it had repeatedly demanded a reduction in VAT on petrol, diesel and cooking gas. “Now it is time for the BJP to walk the talk,” he said.