Fuel Prices Increased. Left declares Bharat Bandh on Monday

Fuel Prices Increased. Left declares Bharat Bandh on Monday

Fuel Prices Increased. Left declares Bharat Bandh on Monday

Though Naidu's ruling TDP didn't announce supporting the protests and national bandh call of the opposition parties led by the Congress, the activists and supporters of TDP were seen participating in the protests against the centre across the state.

Rajasthan government has already announced a four percentage point cut in VAT on petrol and diesel, while Andhra Pradesh announced a Rs 2 cut in petrol and diesel prices on Monday by slashing sales tax on the fuels. Because the price is built up by excessive taxes on petrol and diesel. "Currently, taxes on petroleum are close to 100 per cent (of fuel price) and the government is looking at reducing it to 65-70 per cent", said Madan Sabnavis, Chief Economist, Care Ratings.

The tax ratio can be raised not by increasing rates but by bringing evaders and non-filers in tax net.

"Narendra Modi ji is silent, he has not spoken a word on rising prices of fuel, or condition of farmers, neither on atrocities against women", said Rahul Gandhi while speaking in front of a rally in Delhi. "If taxes are cut, prices will decline significantly". Nearly half of the retail selling price of the two fuels is made up of Central and State taxes. Maintaining its rise with a 14 paisa hike on Tuesday, petrol and diesel were sold at Rs 80.87 and Rs 72.97/litre, respectively.

The fuel rates have been on fire since mid-August, rising nearly every day due to a drop in rupee value and rise in crude oil rates.

Petrol price per litre in Jaipur were hovering around Rs 81 at fuel stations on Monday, down from the recent Rs 83/litre price. "The state government has reduced only four per cent Value-Added Tax on diesel and petrol which is insufficient and the government will have to provide more relief to public", Sachin Pilot told reporters. Giving an example, the official said if petrol is at Rs 83, then Rs 20 goes to states as taxes plus Rs 10 from Centre's devolution. In Mumbai, a litre of petrol costs Rs 87.77 and diesel comes for Rs 76.98, the notification said. The state's share now works out to Rs 23.

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