Fuel prices on Tuesday touched a new high in the city and petrol prices have been reported to be among the highest in the state as compared to the rest of the country, according to the petrol pump dealers association. Within Maharashtra, Amravati reported the highest rate petrol at ₹87.97 per litre.
In Pune, petrol was being sold at ₹86.61 per litre and diesel at ₹74.47 per litre, evoking angry reactions from residents.
As far as petrol prices are concerned, Maharashtra charges ₹14.72 as a value added tax (VAT), in addition to ₹9 as state cess. After including ₹3.16 as distributors commission, finally, the common people have to purchase it at ₹86.61 per litre.
Similarly, for diesel residents have to shell out ₹74.47 which includes ₹12.20 as VAT, ₹1 additional state cess and ₹2.3 distributors commission.
“When the price of fuel in Maharashtra is compared to other states, we have found main difference in state cess and VAT. Our neighbouring states, charge a lesser amount for VAT, for example Goa charges ₹15 per litre. If the Maharashtra government cancels the state cess and reduces VAT, the prices of petrol would be reduced by more than ₹10,” said Ali Daruwala, national spokesperson, All India petroleum dealers association.
{{/usCountry}}“When the price of fuel in Maharashtra is compared to other states, we have found main difference in state cess and VAT. Our neighbouring states, charge a lesser amount for VAT, for example Goa charges ₹15 per litre. If the Maharashtra government cancels the state cess and reduces VAT, the prices of petrol would be reduced by more than ₹10,” said Ali Daruwala, national spokesperson, All India petroleum dealers association.
{{/usCountry}}City-based activist, Vivek Velankar, said,"The state government in 2015 had imposed drought cess of ₹3, but even after three years, the government has not cancelled it. Similarly, in May 2018, the state government started charging extra ₹3 cess to compensate for excise losses through highway liquor shops ban.The ban has been removed, but the state continues to collect the cess for it."