Rising fuel prices in the country have been an issue of friction between the government and the opposition parties for the past couple of days.
Petrol price per litre in Jaipur were hovering around Rs 81 at fuel stations on Monday, down from the recent Rs 83/litre price. Petrol price hit a new high of '88.26 per litre in Mumbai and '80.87 in Delhi on Tuesday while one litre of diesel was selling for Rs 77.47 in Mumbai and Rs 72.97 in Delhi. The price in other metros are: Delhi - Rs 80.73; Chennai - Rs 83.91; and Kolkata - Rs 83.61. The state governments can choose to reduce state taxes to lighten the burden of the common man, but due to revenue pressures, not many are willing to take the bait. Diesel rate touched its highest level of Rs 72.61 a litre.
This was announced by Chief Minister N. Chandrababu Naidu while introducing a resolution in the Assembly on Monday urging the Central government to slash excise duty and Income Tax dividend and cess being levied on petroleum products to bring further relief to people. This is the highest known price for petrol in India. Same is the case with diesel price in Maharashtra, Tamil Nadu and Rajasthan, where the sales tax on diesel is higher than in Kerala. The reduction was carried out on May 31 in such a manner that the prices of both petrol and diesel will drop by a rupee. The cut was based on the prices prevailing on May 30.
Since mid-August, petrol price has risen by Rs 3.42 a litre and diesel by Rs 3.84 per litre as rupee hit record low against the United States dollar, making imports costlier. Delhi charges a Value-Added Tax of 27 percent on petrol and 17.24 percent on diesel. After the BJP came to power, the impositions on fuel shot up over the years. In Chennai, petrol costs Rs 84.05 and diesel Rs 77.13.
On March 1 this year, the state had secured a litre of petrol for Rs 54.60. On this price, the state had imposed a total of Rs 21.84 as sales tax and dealer's commission.
New Delhi:A cut in taxes on petrol and diesel is ruled out for now as neither the central government nor some states have the appetite to stomach revenue loss from such a move, a top government official said on Monday. The state's share now works out to Rs 23.
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