The prices of petrol and diesel have been increasing drastically in India. However, the fuel prices in Gujarat are less than in its neighboring states because of VAT. The government charges VAT or Value added tax on petrol and diesel prices at every production stage.
Currently, the petrol price is ₹121 per liter, and diesel price is ₹103 per liter in Maharashtra. While the petrol price is ₹119 per liter, and diesel is ₹102 per liter in Madhya Pradesh. However, in Gujarat, the petrol and diesel prices are ₹106 per liter and ₹100 per liter.
According to reports, there is a significant difference between the fuel rates in BJP and opposition party ruled states. For opposition party governed states, the lowest diesel rates are ₹99.83 per liter in Kolkata, Bengal, and the highest diesel rates are ₹106.5 per liter in Vijaywada, Andhra Pradesh. Whereas for BJP ruled states, the minimum, and maximum diesel costs are ₹89.42 per liter in Shimla (Himachal Pradesh) and ₹101.16 per liter in Bhopal (Madhya Pradesh).
The petrol rates have taken an upsurge in the past few months. Currently, the least petrol price is ₹103.73 per liter in Dehradun, Uttrakhand. Petrol is the costliest in Vijaywada, Andhra Pradesh, at ₹120.86 per liter. Uttrakhand has the Bharatiya Janata Party government, while Andhra Pradesh has Yuvajana Shramika Rythu Congress Party in power.
VAT is a specific tax levied by respective state governments. Last year, the central government reduced the excise charged on petrol and diesel and appealed to the state governments to do so with VAT. The states governed by BJP have reduced VAT on fuel. But, the states ruled by the opposition party continue to tax petrol and diesel.
The petrol pumps at Aravalli-Shamlaji at the Rajasthan-Gujarat border have used a sly marketing scheme by putting up hoardings that say ‘Petrol-Diesel cheaper than Rajasthan.’