The prices used to be revised on the 1st and 16th of every month. (Express photo)
With the petrol and diesel prices touching an all-time high, the All India Petrol Dealers’ Association (AIPDA) has renewed its demand to remove the tax burden on fuel prices. In an interview with The Indian Express, AIPDA spokesperson Ali Daruwala said if the state govt removes cess, the fuel prices will come down by at least Rs 6/litre
With latest hike, what are petrol and diesel rates in Pune now?
Petro per litre rate has reached Rs 84.54 while diesel is at Rs 71.23
Is this the first time fuel rates have touched such a high?
Yes. The highest petrol price was recorded at Rs 84.04 per litre in 2013. This was the time when the price of crude oil was $ 124 per barrel. Now, at Rs 84.54 per litre, petrol price has reached an all-time high.
Compared to other cities in the country, are the rates in Pune the highest?
Prices in Pune and Mumbai are the highest in the country. Delhi is the cheapest.
Why is it so?
In Maharashtra, the tax burden on fuel is very high. In Pune, 25 per cent VAT is levied on petrol and 21 per cent on diesel. In Mumbai, 26 per cent VAT is levied on petrol. Besides VAT, Rs 9 cess is imposed on fuel prices. Rs 3 cess came into effect after ban on alcohol consumption along the highways and Rs 3 cess was levied as drought relief, Re one towards Swachh Bharat Abhiyan, Re 1 as Krishi Kalyan cess and Re 1 as education cess.
Ali Daruwala; petrol price in Pune touched Rs 84.54 per litre and diesel Rs 71.23 per litre on Monday.
What is the situation in other states?
In Delhi, fuel prices are the cheapest. Similarly, in Karnataka, they have done away with Krishi Kalyan cess and education cess. Therefore, in Karnataka too fuel prices are lower than in Maharashtra.
What is your latest demand?
If at least Rs 6 cess on alcohol ban and drought relief are reduced, fuel prices will come down drastically, giving big relief to the common man. There is no justification for continuing with cess on alcohol when the Supreme Court has lifted ban on liquor sale along the highways. Similarly, parts of Maharashtra were facing drought situation in 2015 when the government had imposed drought relief cess. Now, when there is no drought situation anywhere, why is the cess continuing? We have already heard that the Petroleum Ministry has asked states to reduce VAT on fuel.
Do you expect fuel prices to rise further?
We don’t expect the fuel prices to rise further as the oil companies had been holding on to the hike for over fortnight because of Karnataka elections. Over the past week, they have already hiked the prices. It means whatever hike they wanted to do, has taken place.