Sunday, Nov 18, 2018 | Last Update : 11:51 AM IST

Maharashtra govt may cut fuel prices by Rs 2 as revenue hiked

THE ASIAN AGE. | UMAKANT DESHPANDE
Published : Sep 10, 2018, 5:47 am IST
Updated : Sep 10, 2018, 5:47 am IST

Fuel prices are sky rocking now which are leading toward inflation and the common man is suffering.

As increase in the fuel prices increased the revenue of the state.
 As increase in the fuel prices increased the revenue of the state.

Mumbai: Chief minister Devendra Fadnavis announced on Sunday that the state government is working on various proposals to give relief to the people from the rising fuel prices.

As increase in the fuel prices increased the revenue of the state. Opposition is aggressive and has organised bandh over the issue, so the state government may reduce the petrol and diesel prices by Rs 2-3 per litre, told senior official. Meanwhile, finance minister Sudhir Mungantiwar told to The Asian Age that, State is ready to bring the fuel taxation under GST, let Congress and opposition led governments in the country also should the consent."

Fuel prices are sky rocking now which are leading toward inflation and the common man is suffering. For giving relief to the people and considering the Bharat Bandh agitations on Monday, CM Fadnavis told that the government is mulling over the proposals for reducing the fuel prices. State had already declared and me-
ntioned before the GST council that state government is ready for bringing the fuel prices under GST.

But till the decision of the council, state government is trying to give some relief by reducing the taxes, told officers.

Maharashtra government is charging 25 % tax on Petrol 21 % on Diesel VAT (Value Added Tax) resulting 65 % taxation on the basic fuel prices and Cess. As basic fuel prices increased, state earning increasing since last one year in compare with the earlier revenue. Finance minister Mungantiwar said that, “ If state will reduce petrol and diesel price by one Rupee per litre, then it will be loss of revenue by Rs 1000 cr and 1200 cr respectively approximately. State had reduced the Petrol and diesel prices by Rs 2 and Rs 1 respectively, which had created the revenue loss of Rs 3067 cr. BJP government never increased the tax rates and whatever we increased including cess, now brought on original level in 2017.” CM Fadnavis government is not much willing to take the decision of reducing the  taxes on fuel in Maharashtra as it would loss of revenue to the state which is in the financial crunch. But pressure is mounting on the state, to reduce the taxes as the revenue from the fuel taxation increased due to the rise in the basic prices. Without much affecting the state revenue, which will be passed to the people for getting political mileage and cooling public anger, told sources. 

Tags: devendra fadnavis, fuel prices