Now Reading: Petrol steady after Rs 5 hike; state VAT gap persists
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Petrol steady after Rs 5 hike; state VAT gap persists
Retail fuel prices held steady on 13 August despite a drop in Brent crude, nearly three months after a cumulative Rs 4.82 per litre hike ended a 76-day freeze during the Hormuz…
The Story in Brief
Retail fuel prices held steady on 13 August despite a drop in Brent crude, nearly three months after a cumulative Rs 4.82 per litre hike ended a 76-day freeze during the Hormuz crisis. State-run oil companies absorbed losses of over Rs 750 crore per day before the hikes began in mid-May, according to Petroleum Ministry Joint Secretary Sujata Sharma.
The central government cut excise duty by Rs 10 per litre in March, but pump prices vary widely due to state VAT. Millenniumpost reports that BJP-ruled states passed the full cut to consumers, while INDIA-bloc states like Telangana and Kerala did not reduce VAT, keeping petrol above Rs 112 per litre. Oil bonds from the UPA era, over Rs 1.34 lakh crore, are still being redeemed by the current government.
The Indian Opinion
Opposition parties blame the Centre for high fuel prices, yet the states they govern levy the highest VAT, up to 35 per cent in Andhra Pradesh and over Rs 116 per litre in Telangana. The government’s claim of shielding consumers rings hollow when OMCs still lose Rs 750 crore daily. The real story is political theatre: no party wants to cut its own tax. Watch whether any INDIA-bloc state reduces VAT when crude falls below $80 a barrel. That will show who truly wants cheaper fuel.
Sources (3): millenniumpost.in, millenniumpost.in (2), livemint.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
