July 6, 2019 5:47:48 pm
Petrol prices shot up on Saturday by a minimum of Rs 2.40 per litre and diesel by Rs 2.36 a day after Finance Minister Nirmala Sitharaman raised taxes on the fuels in her Union Budget. Sitharaman on Friday raised excise duty and road and infrastructure cess on petrol and diesel by Rs 2 per litre each to raise Rs 24,000-28,000 crore on an annual basis.
Prior to the tax increase, petrol attracted total excise duty of Rs 17.98 per litre (Rs 2.98 basic excise duty, Rs 7 special additional excise duty, and Rs 8 road and infrastructure cess). Now, this tax has gone up to Rs 19.98 per litre. On diesel, a total of Rs 13.83 per litre excise duty was charged (Rs 4.83 basic excise duty, Rs 1 special additional excise duty, and Rs 8 road and infrastructure cess). This now stands at Rs 15.83 per litre.
Rates vary from state to state depending upon the incidence of local sales tax or VAT. Here is how the additional cess affected petrol and diesel prices in major cities:
Delhi: Petrol price in the national capital rose by Rs 2.45 per litre to Rs 72.96 according to a price notification issued by state-owned Indian Oil Corp (IOC), PTI reported. On the other hand, diesel price was hiked by Rs 2.36 per litre in Delhi to Rs 66.69. Moreover, VAT is levied at the rate of 27 per cent on petrol and 16.75 per cent on diesel.
Mumbai: The increase in petrol price was by Rs 2.42 to Rs 78.57, according to a price notification issued by state-owned Indian Oil Corp (IOC), PTI reported. Diesel shot up by Rs 2.50 per litre to Rs 69.60. In Mumbai, VAT on petrol is 26 per cent plus Rs 7.12 a litre additional tax while diesel attracts 24 per cent sales tax.
Rajasthan: Petrol and diesel prices in the state soared by 5 per cent. While the petrol price has seen an increase of Rs 4.62 to Rs 75.77 per litre, diesel became costlier by Rs 4.59 to retail at Rs 71.24 per litre, PTI quoted Rajasthan Petroleum Dealers Association President Suneet Bagai as saying.
Madhya Pradesh: Petrol and diesel prices rose by Rs 4.5 litre after the increase in additional duty. Petrol prices shot up to Rs 78.14 from Rs 73.61 per litre and diesel prices increased to Rs 70.06 litre from Rs 65.63 per litre.
On the petrol price hike issue, state minister Jitu Patwari said, “The state government was forced to take a decision of levying additional tax after the Centre reduced the Madhya Pradesh’s share by Rs 2,677 crore in the central budget presented on Friday.”
When asked about Congress’ promise of reducing the prices of petrol and diesel by Rs 5, the Minister for Sports and Youth Welfare said, “State’s budget is to be presented only four days from now. In this situation, we have to compensate for the loss incurred by the sudden reduction of the state’s share by the Centre.”
Kolkata: The price of petrol increased by Rs 2.40 to Rs 75.15.
Chennai: Petrol prices shot up by Rs 2.57 to retail at Rs 75.76 a litre.
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