Petrol, diesel prices start rising again

Ahead of big festive season Capital hails much-needed relief

Ahead of big festive season Capital hails much-needed relief

After lowering sales tax/VAT charged on petrol following Centre's decision, Maharashtra government on Friday also reduced the diesel price by Rs 1.56 per litre.

In Mumbai, petrol is up 18 paise and is now being retailed at Rs 87.15 per litre.

Meanwhile, in Chennai petrol costs Rs. 84.89 per litre and diesel is priced at Rs 77.42 per litre.

Interestingly, among the NE states, Assam levies the highest VAT- 30.90 pct on petrol and 22.79 pct on diesel.

The price of the fuel in Delhi, Chennai and Kolkata is Rs 73.24, Rs 77.42 and Rs 75.09 per litre, respectively.

Petrol and diesel rates are decided on a daily basis by oil-marketing companies on the basis of the rupee-dollar rate and global crude oil prices.

Several states had announced reduction in fuel prices by cutting sales tax/VAT.

A day after the Centre reduced the excise duty on petroleum products and most States responded with a cut in the value-added tax (VAT), Congress president Rahul Gandhi on Friday appealed to Prime Minister Narendra Modi to bring petrol and diesel within the ambit of the Goods and Services Tax (GST).

In India, nearly half of the price of retail fuel is due to taxes. Whereas Maharashtra government has not done any additional reduction on petrol price and Jharkhand also not slashed down the price. Finance Minister Arun Jaitley on Saturday assured the markets that the government would not go back to regulating fuel prices.

In the press conference, Jaitley said that he expects to see a negative revenue impact of Rs 10,500 crore as a result of the tax cuts and said that he expected that the government would be able to absorb the impact without harming its fiscal deficit target of 3.3%.

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