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 Monday. Congress, the principal opposition party, has said that it's open to the idea of bringing petroleum products under the ambit of goods and services tax (GST) as a solution to the problem of high retail prices of fuel.
Post the price hike, non-branded petrol was priced at Rs 80.73 per litre in Delhi while diesel costs Rs 72.83 per litre - the highest ever prices recorded in the country's history.
Union minister Ravi Shankar Prasad said that the problem being faced by the people because of rising fuel prices were momentary and caused by global factors.
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Andhra Pradesh gets Rs 22.15 per litre on petrol and Rs 16.87 on diesel.
Mumbai has the highest tax rates among the metros. The Centre levies a total of Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel. Petrol dealers said that for the last two weeks, fuel prices have been increasing continuously at least by 20 paise to 30 paise every day. "If taxes are cut, prices will decline significantly". Because the price is built up by excessive taxes on petrol and diesel.
As it stands, the sales tax the state has imposed on petrol is 30.37 per cent, and that on diesel is 23.81 per cent.
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. This led to its excise collections from petro goods more than doubling in the last four years - from Rs 99,184 crore in 2014-15 to Rs 2,29,019 crore in 2017-18. "Why is the common man being made to pay the price for the miscalculations on part of the Central government?" asked the MNS president. Today, the price at which the state gets a litre of petrol is Rs 58.25.