After a lull for nearly a month, petrol rate was hiked by 26 paise at city fuel pumps. Diesel went up by 27 paise. Both auto fuels have risen by more than Rs 14 over the last 10 months—one of their steepest in recent years. The prices rose in Thane and Navi Mumbai too, with petrol retailing at Rs 90.72/litre and diesel at Rs 80.9.
Various factors, including rupee to dollar exchange rate, cost of crude oil, global cues and demand for fuel, impact their price. The price includes excise duty, VAT and dealer commission.
Petrol taxed at up to 300% of basic cost
Value-added (VAT) varies from state to state, and is among the highest in Maharashtra.
The state government burdens consumers by charging VAT on petrol at 26% not only on the basic price and transport cost, but also on excise duty. Over and above, Maharashtra charges a cess of Rs 10.12 per litre. Sources said that petrol is taxed at 250% to 300% of the basic cost.
Similarly, the government charges VAT on diesel at 24% on the basic cost, transport cost and central excise, besides a cess of Rs 3 per litre, said a petrol dealer, requesting anonymity.
Transporters said that the latest hike in diesel rate was uncalled for and they will have an emergency meeting on whether to go on an agitation.
Transporters, whose 65% of costs depend on fuel prices, have petitioned the Maharashtra government on more than three occasions in 2020 to grant relief.