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Maharashtra’s Policy to Fight Fuel Hike

By Motortrend India Staff   |   09 June,2008

Despite the hike in prices of petrol and diesel by Rs 5 and Rs 3 per liter, the consumers of vehicles in Maharashtra will pay lesser compare to other states.

The Maharashtra state government has cut down sales tax on fuel by 2 percent. The state cabinet held a high profile meeting and decided to cut down sales tax on petrol and diesel. Hence, petrol will be cheaper by 80 paise and diesel by 60 paise than the pre hike values of Rs 50.88 and Rs 39.54, respectively.

As per the hike in fuel prices proposed by the central government, in Mumbai the price of petrol is Rs 55.54 and diesel is Rs 39.12.

The sales tax on petrol and diesel will come down to 26 percent from the current 28 percent in Mumbai, Thane and Navi Mumbai. In the rest of the state the sales tax on diesel will reduce to 23 percent and petrol to 26 percent from the currently levied taxes.

Various petrol and diesel associations in the state have welcomed the move by the government. However, the Federation of All Maharashtra Petrol Diesel Associations is demanding more cuts saying that the government should not charge in excess of the actual supply rate.

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