Since mid-August, petrol price has risen by Rs 3.24 a litre and diesel by Rs 3.74 per litre as rupee hit record low against the U.S. dollar, making imports costlier.
Congress party led by Rahul Gandhi is staging a country-wide protest today, against the surging fuel prices under the Modi government. Bharat Bandh was called for today from 9 AM to 3 PM to bring petrol and diesel under the Goods and Services Tax (GST), which, the grand-old party said, would decrease the price by Rs 15-18. To ease the burden a bit we are reducing the price on petrol and diesel by Rs 2 per litre. The central government now levies a total excise duty of Rs 19.48 per litre of petrol and Rs 15.33 per litre on diesel. In Mumbai, the prices of petrol and diesel on Sunday are Rs 87.89 per litre diesel Rs 77.09 per litre respectively. The continuous rise in diesel prices has complicated matters for truckers.
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Nearly half of the fuel prices is made up of taxes.
Since oil prices have started rising, following U.S. sanctions on Iraq and the slide of the rupee against the dollar, there have been calls to reduce tax. Both petrol and diesel prices have been at their all-time high in the country for around a week now, due to increase in crude oil prices and depreciation in the rupee against the dollar. Because the price is built up by excessive taxes on petrol and diesel.
"We have chose to reduce Value-Added Tax on diesel and petrol by 4 per cent, which will provide much-needed relief to the people of the state, be it farmers or women or others", Raje told reporters in Rawatsar after making the announcement. Nearly half of the retail selling price of the two fuels is made up of Central and State taxes.