NEW DELHI: The cumulative petrol and diesel revision of just under Rs 5 a litre in three days this month is the "smallest material upward movement" of any major economy outside the directly subsidising Gulf producers, and the states that tax fuel most heavily are governed by the political opposition, according to data.
For example, states with the highest pump prices concentrate in the Congress-ruled and INDIA-bloc south (Telangana, Kerala, Karnataka, Tamil Nadu) and in a single NDA-allied outlier (Andhra Pradesh, where the TDP state government levies an exceptionally high VAT plus per-litre addition).
States with the lowest pump prices concentrate in the BJP-ruled north and west: Gujarat, Uttar Pradesh, Delhi, Haryana, Goa, Assam. Maharashtra and Madhya Pradesh are BJP-led but carry a higher VAT or recent cess.
Three states have petrol above Rs 112 a litre after the latest revisions are Andhra Pradesh, Telangana, and Kerala. Telangana and Kerala are governed by parties of the INDIA bloc. These three states levy the highest VAT rates in the country.
Andhra Pradesh charges 31 per cent VAT plus Rs 4 a litre plus a road development cess, taking the effective rate close to 35 per cent. Telangana takes petrol close to Rs 116. Kerala adds a social security cess on top of its base VAT.
Meanwhile, six states have petrol at or below Rs 102 a litre are Gujarat, Uttar Pradesh, Delhi, Haryana, Goa, and Assam. All six are governed by the BJP.
The same opposition leaderships that ask the central government to cut excise duty for the relief of the consumer have at no point cut the value added tax their own state governments levy on the same litre of fuel, according to sources. (IANS)
Also Read: Fuel Prices Hiked for Third Time in 10 Days as Global Crude Surge Hits India