The petrol and diesel prices have resumed the ascending trend today. "Kindly bring petrol and diesel under the purview of GST", he tweeted in Hindi.
Petrol prices in Mumbai have also witnessed a hike of 18 paise and are being sold at Rs 87.15 per litre, however, the price of diesel has decreased by 70 paise and it is being retailed at Rs 76.75 per litre. Since August 2018, the states of Karnataka, Rajasthan, Andhra Pradesh, West Bengal and Kerala cut fuel prices by anywhere between Re 1 to Rs 2.
Petrol and diesel rates are decided on a daily basis by oil-marketing companies on the basis of the rupee-dollar rate and global crude oil prices.
Delhi, which did not cut VAT on fuel, still has the cheapest fuel in all metros and bulk of state capital as it levies lower taxes.
On Thursday, the Centre had announced a cut of Rs 2.50 per litre for petrol and diesel, urging states to match the price reduction.
Meanwhile, the Maharashtra government slashed the diesel prices by Rs 1.56 per litre, taking the effective relief on the transportation fuel to Rs 4.06. Central excise duty on petrol and diesel was Rs 9.23 and 3.46 per litre respectively before 2014. According to an official release, Value-Added Tax on petrol in state has been reduced from 26 per cent to 22.20 per cent, whereas it will be 15 per cent on diesel as against the earlier rate of 19 per cent.
The hike in duties in 2014-16 had led to excise collections from petro goods rising from Rs 99,184 crore in 2014-15 to Rs 2,29,019 crore in 2017-18. Earlier, while briefing media, Union Finance Minister Arun Jaitley said that they have reduced Rs 2.50 on petrol and diesel prices.
In the press conference, Jaitley said that he expects to see a negative revenue impact of Rs 10,500 crore as a result of the tax cuts and said that he expected that the government would be able to absorb the impact without harming its fiscal deficit target of 3.3%.
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