The Congress is observing a nationwide protest today after calling for a Bharat Bandh over rising petrol and diesel prices in the country. Similarly in Mumbai, petrol touched Rs 87.77 per litre and diesel Rs.76.98 per litre. "This is the real outcome of oil tax cut", said a source.
Petrol prices went up by 39 paise per litre and Diesel prices saw an upward trend of 44 paise per litre in Delhi. Earlier, petrol prices were revised every fortnight, meaning that unlike now, the prices changed on the 1st and 16th of every month.
Nearly half of the retail selling price of the two fuels is made up of central and state taxes.
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While a cut in excise duty that the central government levies will impact fiscal deficit, states like Bihar, Kerala, and Punjab are not in a position to cut sales tax (or VAT), the official, who wished not to be identified, said.
Through these graphics, the BJP contended that the percentage increase in the prices of petrol and diesel was higher during the UPA regime (2004-2014) than during the NDA one (2014-present). On the other hand, the taxes imposed by the Narendra Modi government on fuel is considerably high. The excise duty on petrol was ₹9.2 per litre in 2014 and it has gone up to ₹19.48 per litre.
In the 13 days between August 29 and September 10, petrol and diesel prices have risen daily; in the case of petrol from Rs 81.45 to 84.06, and in the case of diesel from Rs 74.74 to Rs 77.98.
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Apart from 25% Value Added Tax (VAT) on petrol and 21% on diesel, the Maharashtra government had also introduced Rs 9 and Re 1 as cess on petrol and diesel respectively. At the same time, the diesel prices too marched ahead and was priced at Rs 78.83 per litre.
Govt rules out excise duty cut as petrol, diesel 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. According to petroleum dealers in the State, compared to Friday's price, petrol on Saturday cost 41 paise more while diesel price rose 48 paise a litre. Karnataka State Road Transport Corporation staff and workers' federation have extended their support to the bandh.
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