Fuel surcharge raised to avoid revenue loss

The Asian Age.  | Shruti Ganapatye

Metros, Mumbai

The Central governments’s cut in the fuel prices has not helped Maharashtra citizens who are now facing the increased prices.

A petrol pump attendant

Mumbai:  Despite the Centre’s price cut for petrol by Rs 2.16 on May 15, the Maharashtra government increased the value added tax (VAT) surcharge on fuel by Rs 2.

The Central governments’s cut in the fuel prices has not helped Maharashtra citizens who are now facing the increased prices.

The reason behind this is that the decrease in petrol prices would mean the state loses some Rs 700 crore in revenue and hence it has hiked the surcharge from Rs 9 to Rs 11. This is the second hike given to the VAT surcharge in last two months alone. On April 21 this year, the Maharashtra government had increased the surcharge VAT on the fuel from Rs 6 to Rs 9. This  led to an increase in petrol prices to Rs 76.76 in Mumbai. It is the highest price in the country for the fuel. Diesel prices have still not been affected due to the hike in the surcharge.

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