Published: Wed, September 12, 2018
Money | By Armando Alvarado

Fuel price touches fresh high; Petrol near Rs. 90 in Mumbai

Fuel price touches fresh high; Petrol near Rs. 90 in Mumbai

On the 15th day of consecutive hikes, petrol prices increased on Tuesday by Rs 0.14 and diesel by Rs 0.15, from 6 a.m, barely two days before the state's biggest 10-day Ganeshotsav festival begins.

Touching a new high, in Mumbai, the prices of petrol threatened to touch Rs 90-per-litre mark at Rs 88.26 today whereas a litre of diesel is available for Rs 77.47.

"The statement given by the Government that it has no role in fixing the fuel price is a misleading statement because the oil companies are fixing the price of petrol and diesel with the implied consent of the Government itself".

Thanks to the fall in the dollar-rupee and rise in petrol and diesel prices, states will garner an additional Rs 22,700 crore in revenue over and above budget estimates, according to a State Bank of India (SBI) research note. "Alternatively, a $1/barrel increase in oil prices translates, on average, to a Rs 1,513-crore revenue gain for all the major 19 states", it mentioned.

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The Court, nonetheless, asked the Centre to consider an earlier representation pending before it on price rise of petrol and diesel within four weeks. Rajasthan has cut petrol and diesel prices by Rs 2.5 per litre, Andhra Pradesh by Rs 2 and West Bengal by Re 1.

The state that charges the maximum sales tax/VAT on diesel - 28.08 per cent - is Andhra Pradesh.

Ghosh sees the largest revenue gain for Maharashtra (Rs 3,389 crore), followed by Gujarat (Rs 2,842 crore). Another petrol pump owner told the daily that fuel stations along the border are struggling due to the price differences that amount to as much as Rs 5 per litre.

Since there are no immediate elections in AP, Naidu could claim that he had understood the pain of the people and hence, took the decision, though as a matter of fact, AP has the highest Value-Added Tax on diesel and petrol. "Though many States are having a revenue surplus, they use the surplus revenue to finance capital expenditure and interest obligations, " the report said.

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