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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 reduce excise duty by ₹10 per litre.
BJD spokesperson Lenin Mohanty said the ongoing conflict involving Israel, the United States and Iran has raised fears of a global fuel crisis, leading to public uncertainty over the availability of petrol, diesel and cooking gas.
“Though the government has repeatedly assured that there is no shortage, such assurances have failed to allay public concerns. In this context, the Center has reduced the excise duty on petrol and diesel by ₹10 per litre. However, the reasons for this decision have not been clearly explained,” he said.
Mr. Mohanty added that there was speculation that the move was made in anticipation of a possible price hike to avoid a public backlash. “Ensuring uninterrupted fuel supply has now become the government’s biggest challenge,” he noted.
Criticizing Chief Minister Mohan Majhi for merely welcoming the Centre’s decision, the BJD leader said, “If the Odisha CM is really committed to ensure 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 applies one of the highest rates of VAT on fuel. “While Odisha levies 28% VAT, Maharashtra and Madhya Pradesh levies around 25% and Rajasthan about 19%. Instead of routine welcome, the state government should reduce VAT for the sake of the people,” he said.
Mr. Majhi further added that when the BJP was in opposition, it had repeatedly demanded a reduction in VAT on petrol, diesel and cooking gas. “Now is the time for the BJP to speak,” he said.
Published – 28 March 2026 01:15 IST
