Fuel price hike: Petrol crosses Rs. 100 in Rajasthan
What's the story
For the first time ever, the price of petrol crossed the Rs. 100 per liter mark in Rajasthan on Wednesday after fuel rates were hiked for the ninth day in a row. Petrol and diesel prices were increased by 25 paise per liter each, according to a price notification of state-owned fuel retailers.
Details
Regular petrol soared past Rs. 100 for the first time
While branded or additive-laced petrol, which attracts higher taxes, had already crossed the Rs. 100-mark in some places in states like Maharashtra, Madhya Pradesh, and Rajasthan, this is the first time that regular petrol crossed the physiological mark. In Sriganganagar town of Rajasthan, petrol price soared to Rs. 100.13 a liter on Wednesday. Diesel in Sriganganagar is priced at Rs. 92.13 a liter.
Details
VAT and freight charges in a state determine fuel prices
Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. Rajasthan levies the highest VAT on petrol in the country. After Wednesday's price increase, petrol in Delhi costs Rs. 89.54 per liter and diesel Rs. 79.95. In Mumbai, the petrol price rose to Rs. 96 a liter and diesel was priced at Rs. 86.98.
Taxes
Current VAT and road cess levied in Rajasthan
The record price in Rajasthan is despite the State Government late last month cutting VAT on petrol and diesel by 2 percent. The value-added tax on petrol, after the cut, at 36 percent plus Rs. 1.5 per liter road cess is still the highest in the country. On diesel, the state levies 26 percent and Rs 1.75 per liter road cess.
Hiked prices
Fuel prices rose at staggering rate in nine consecutive days
In Anuppur, MP, petrol now comes at Rs. 99.90 per liter and diesel at Rs. 90.35. Branded petrol and diesel at Sriganganagar come at Rs. 102.91 and Rs. 95.79 respectively. In Delhi, branded petrol and diesel come at Rs. 92.37 and Rs. 83.24, respectively. In nine straight days, prices have gone up by Rs. 2.59 per liter for petrol and Rs. 2.82 for diesel.
Information
Excise duty levied by Centre on petrol and diesel
Central and State taxes make up for 60 percent of the retail selling price of petrol and over 54 percent of diesel. The Union Government levies Rs. 32.90 per liter of excise duty on petrol and Rs. 31.80 a liter on diesel.
Reaction
Opposition has registered disagreement with rising prices
The relentless hike in prices has been criticized by the opposition parties including Congress, which has demanded an immediate cut in taxes to ease the burden on the common man. However, Oil Minister Dharmendra Pradhan last week had told Parliament that the government is not considering a reduction in excise duty to cool rates from their record highs.
Information
Retail petrol rates have risen considerably since mid-March 2020
Retail petrol rates have risen by Rs. 19.95 per liter since mid-March 2020 after the government raised taxes by a record margin to mop up gains arising from a fall in international oil prices. Diesel rates have gone up by Rs. 17.66.