GST indirectly brings a drop in fuel prices in Maharashtra 

Rujuta Parekh
Wednesday, 12 July 2017

Pune: The prices of petrol and diesel in the state of Maharashtra will see a drop of 66 paisa and Rs 1.25 respectively as the state government has moved to abolish the surcharge levied by the Bombay Port Trust. 

While Minister of Food and Civil Supplies, Girish Bapat announced on Wednesday morning that the prices have dropped as the state surcharge has been abolished, sources stated that only one surcharge that has been abolished.  

Pune: The prices of petrol and diesel in the state of Maharashtra will see a drop of 66 paisa and Rs 1.25 respectively as the state government has moved to abolish the surcharge levied by the Bombay Port Trust. 

While Minister of Food and Civil Supplies, Girish Bapat announced on Wednesday morning that the prices have dropped as the state surcharge has been abolished, sources stated that only one surcharge that has been abolished.  

According to sources, a total surcharge of Rs nine is levied on petrol and diesel in the state. “Rs six was already being charged for Education Cess, Krishi Kalyan Cess and others. An additional Cess of Rs three was added on petrol and diesel in April this year under the tag of Drought cess, which was a move to recover the losses incurred by the government due to ban on sale of alcohol along highways,” sources explained. 

The sources stated that not all the cesses have been abolished but only one. “The Bombay Port Trust was levying an entry tax/cess which has been abolished due to implementation of the Goods and Services Tax (GST). This was called the State Specific Cess (SSC). Only this cess has been abolished due to which the price of petrol and diesel has come down in the state,” the sources elaborated. 

Speaking on the abolition of the SSC, spokesperson of the All India Petrol Dealers Association (AIPDA), Ali Daruwalla said, “AIPDA has welcomed the removal of SSC by the state government. Oil companies have confirmed that the cess has been abolished which has caused the prices of petroleum products to drop in the state.” 

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