[TorqueLord]

"Cascading" can be interpreted negatively, implying that there will be downsides to such a decision and it needs time to think through something as drastic as this. I think it's basically the state govt saying that only having CNGs and EVs is not feasible. Hopefully common sense will prevail and such hasty decisions won't be taken.

[carjack3090]

All Indian OEM should start working on some type of Hybrid ASAP. I am pretty sure Government won't do anything and it will be some form of Court that is going to throw in the hammer to phase out Diesel/Petrol cars by some cut off date.

Anyways every car by now should have some type of Hybrid technology in it

[himanshugoswami]

A large portion of state government revenue comes from VAT on fuel (the other one being liquor). That's the reason most state governments have not agreed to bring fuel under GST.

Low sale of fuels will mean a sharp drop in the state's revenue. Hence the "cascading" effect.

Also, offsetting this by imposing additional tariff on electricity will not work as this will severely hurt the lower strata of society, which is the main vote bank.

Don't see this happening anytime soon.

[carjack3090]

Originally Posted by himanshugoswami

A large portion of state government revenue comes from VAT on fuel (the other one being liquor). That's the reason most state governments have not agreed to bring fuel under GST.

Low sale of fuels will mean a sharp drop in the state's revenue. Hence the "cascading" effect.

Also, offsetting this by imposing additional tariff on electricity will not work as this will severely hurt the lower strata of society, which is the main vote bank.

Don't see this happening anytime soon.

People make a mistake when they assume Government want more and more of Petrol Liasoning for more revenue. In reality, Government see a lot of cash outflow due to Fuel, which keeps their budget under deficit stress.

Movement towards EV will lesser the stress and open the strings to use the money elsewhere