It was the time India was waiting for the fuel price in the country breached Rs.100 per litre. However, the cost differ from state to state depending on the incidence of local taxes such as VAT and freight charges.
Rajasthan levies the highest value-added tax (VAT) on petrol in the country, followed by Madhya Pradesh. While branded or additive-laced petrol, which attracts higher taxes, had crossed the ₹ 100-mark in some places in states like Maharashtra, Madhya Pradesh and Rajasthan, regular petrol crossed the physiological mark in Sriganganagar town of Rajasthan on Wednesday, and on Thursday it went past that mark in Madhya Pradesh.
Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. Rajasthan levies the highest value-added tax (VAT) on petrol in the country, followed by Madhya Pradesh.
In Mumbai, petrol price rose to ₹ 96.32 a litre and diesel was priced at ₹ 87.32. Oil Minister Dharmendra Pradhan had on Wednesday blamed output cut by oil-producing nations for the rally in international oil prices that have translated into higher retail rates in India.
International oil prices have been on the boil since Saudi Arabia pledged additional voluntary output cuts of 1 million barrels per day in February and March under a deal between the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, a group known as OPEC+.
This has resulted in oil prices rising to USD 63 per barrel, the highest level in more than a year.
A report says, Minister Pradhan last week had told Parliament that the government is not considering a reduction in excise duty to cool rates from their record highs. Central and state taxes make up for 60 per cent of the retail selling price of petrol and over 54 per cent of diesel. The union government levies ₹ 32.90 per litre of excise duty on petrol and ₹ 31.80 a litre on diesel.