Following the continuous increase in the fuel rates for the last several days, the price of petrol on Wednesday crossed the ₹100-per litre mark (₹100.13) in Rajasthan’s Sriganganagar district where the diesel price now is ₹92.13.
Rajasthan has one of the highest VAT rates on fuel among the big States despite the State government reducing it on both fuels by 2% last month.
The petrol rate touched the record high apparently because of transportation cost as the fuel is supplied to Sriganganagar, situated in northern Rajasthan, from Jodhpur and Jaipur depots.
Chief Minister Ashok Gehlot had earlier this week blamed the Centre for the rising prices, pointing out that the State would lose an annual tax revenue of ₹1,000 crore by reducing VAT by 2%. He told the Assembly the Centre had increased the special excise duty in which the States did not have a share.
Petroleum Dealers’ Association president Sunit Bagai said the State government had increased the VAT on petrol and diesel by 6% each during the lockdown. The VAT, which was still high, should be brought down, as the high fuel prices would make the movement of goods costlier and increase the hardship of the common people, he said.