Mumbai: Although the petrol and diesel prices were reduced by over Rs 2 per litre across major metropolitan cities of the country, the vehicle users in Maharashtra will have to pay more because of higher VAT rates. In Delhi, petrol was cut by Rs 2.69 per litre to Rs 70.29 per litre, while diesel saw Rs 2.33 cut to Rs 63.01 per litre. In Mumbai, Petrol is now charged at Rs 75.99 and Diesel at Rs 65.97.
A major reason for the drop in fuel prices is the biggest rout in crude oil prices in the past 30 years on Monday.
State finance department officer admitted that the state government imposes highest VAT of 39.12% on petrol and 24.78% on diesel in Mumbai, Thane and Navi Mumbai. However, for rest of Maharashtra, the state government levies 38.11% VAT on petrol and 21.89% on diesel. However, VAT on petrol is 35.12% and 16.74% on diesel in Punjab, 35.77% on petrol and 28.08% on diesel in Andhra Pradesh and 35.78% on petrol and 23.22% on diesel in Madhya Pradesh.
The officer told FPJ,'' The state government has set GST collection target of Rs 1.03 lakh crore and Rs 40,000 crore from VAT on petrol and diesel for 2019-20. The government in the annual budget for 2020-21 announced last year has proposed to levy additional Re 1 VAT on petrol and diesel per litre after the budget is passed by the state legislature. In view of this, the petrol and diesel rates will be higher in Mumbai and rest of Maharashtra compared to other states.'' He informed that in addition to VAT, excise duty, and dealer commission are added to the retail selling price of petrol and diesel.