Amid Petrol and Diesel Price Hikes, Rajasthan Govt Announces 4% Cut in VAT

Fuel prices across the country continue to rise relentlessly. Petrol per litre today was priced at Rs 80.73 in Delhi, Rs 83.61 in Kolkata, Rs 88.12 in Mumbai and Rs 83.91 in Chennai. Diesel prices per litre were at Rs 72.83 in Delhi, Rs 75.68 in Kolkata, Rs 77.32 in Mumbai and Rs 76.98 in Chennai.

Rates for the two petroleum products have touched new all-time highs on Monday as the Indian rupee touches a new record low of 72.67 against the US dollar. International crude prices climbed on Monday as U.S. energy companies cut two oil rigs last week and fears of sanctions on Iranian oil exports loomed. Benchmark Brent was trading higher at $77.25 a barrel in morning trade.

Meanwhile, as opposition parties call for a nationwide bandh against NDA government over fuel price rise, Rajasthan's chief minister Vasundhara Raje on Sunday announced a 4 percent cut in the VAT (value added tax) imposed by the state on petrol and diesel. Notably, this decision comes ahead of the assembly elections in the state.

Petrol price per litre in Jaipur were hovering around Rs 81 at fuel stations on Monday, down from the recent Rs 83/litre price. The VAT is now reduced to 26 percent from 30 percent which would be close to a Rs 2.5/litre drop from Sunday's prices.

VAT paid by consumers on final retail price is the highest for petrol in Mumbai at 39.12 percent and for diesel in Telangana at 26 percent. The central government charges an excise duty of Rs 19.48 per litre of petrol and Rs 15.33 per litre on diesel.