According to Indian Oil Company, in Mumbai the petrol price was at Rs 85.29 per litre and diesel was at Rs 72.96 per litre. Centre's Excise duty and value added tax imposed by states account for nearly half of the retail prices of petrol and diesel. The BJP at that time has made up its mind that their road to victory may pass from a petrol pump and hence they very beautifully managed the protest series on social media against the rising fuel prices.
Mumbai: Petrol and diesel prices will come down once the centre builds a consensus to bring them under the goods and services tax (GST), Maharashtra chief minister Devendra Fadnavis said on Thursday.
Prices of diesel and petrol in India have surged to a record high, stoking opposition criticism of Prime Minister Narendra Modi's administration for causing hardship to ordinary people.
Noting that petrol and diesel prices are defined by global crude oil rates, the chief minister said the GST Council will also have to look into aspects like revenue losses before taking a decision.
The central government levies Rs 19.48 a litre of excise duty on petrol and Rs 15.33 per litre on diesel. This shows that higher petrol and diesel prices can not be ignored from a political viewpoint in our country. If prices sustain within the $60-80 a barrel mark, fuel subsidy for the financial year may exceed the budgeted Rs 250 billion. "We understand that there is a compelling need for a long-term solution, structured solution", he said.More news: Cavs coach Tyronn Lue: LeBron James will be great in Game 6
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The government had raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October previous year by Rs 2 a litre.
Another option before the government is to convince the states on bringing petrol and diesel under the GST regime.
"It is possible to cut up to Rs. 25 per litre, but the government will not". Oil PSUs have also maintained that no order has been passed by the government yet while admitting that sudden price hikes can trigger a situation of panic as seen in the last few days.
Petrol companies are passing on the relentless rise in worldwide oil prices to the consumers. The Centre levies Rs 19.48 as excise duty on a litre of petrol and Rs 15.33 on diesel.
Currently, the fuel prices are varying from state to state as the prices of fuel and diesel also depend on the local sales tax or VAT (value added tax).