Petrol prices hiked by 97 ps

Rujuta Parekh
Tuesday, 1 August 2017

Speaking about the further rise in prices, spokesperson of AIPDA, Ali Daruwalla said, “As per the declaration of the Government of Maharashtra about the farmer loan waiver, a burden of Rs 28,000 crore will surely be passed on to petrol and diesel, as the coffers of the state treasury are totally empty. Going by past records of the government, it has been a trend of taxing petroleum products for this purpose. That is the reason petrol and diesel have been kept out of the ambit of the GST. So at any time the State government wants, it can levy a surcharge on petrol products and recover the deficit and keep the GDP intact.” 

Pune: The prices of petrol and diesel are set to rise by nearly one rupee, as State-run oil companies have announced an increase in the commission of petroleum dealers. 

The All India Petrol Dealers Association (AIPDA) has also forecast a further rise in prices in the near future due to the farmer loan waiver announced by the State government. 

The price of petrol will see an upward revision of 97 paise per litre, while diesel will see a rise of 87 paise per litre from midnight on Monday, as the dealers’ remuneration has been revised. The hike in the commission comes after AIPDA had called for a nationwide petrol strike on July 14 in the matter. 

Speaking about the further rise in prices, spokesperson of AIPDA, Ali Daruwalla said, “As per the declaration of the Government of Maharashtra about the farmer loan waiver, a burden of Rs 28,000 crore will surely be passed on to petrol and diesel, as the coffers of the state treasury are totally empty. Going by past records of the government, it has been a trend of taxing petroleum products for this purpose. That is the reason petrol and diesel have been kept out of the ambit of the GST. So at any time the State government wants, it can levy a surcharge on petrol products and recover the deficit and keep the GDP intact.” 

Daruwalla said that AIPDA has forecast a price rise of Rs 2 per litre in petrol and diesel. “The State assembly may anytime increase the prices of petrol and diesel to compensate for the farmer loan waiver,” he said. AIPDA has appealed to the State govt to not increase diesel prices as petrol pumps in rural areas will be adversely affected. “Neighbouring states sell diesel cheaper than Maharashtra. If diesel prices go up, pumps in the outskirts will lose customers,” he said.

LPG cost to rise
Meanwhile, Liquid Petroleum Gas (LPG) is also set to get dearer for consumers as the Union government, on Monday, announced a hike of Rs 4 per month in prices of LPG cylinders, to eliminate all subsidies on LPG by March next year.

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