Diesel rates in Maharashtra are the highest in the country, thanks to higher taxes levied by the State Government, according to the Bombay Goods Transport Association .
A litre of diesel in Mumbai costs Rs 52.45 while it is Rs 46.95 in Delhi , according to the rate chart on Indian Oil Corporation (IOC) Web site. In Chennai and Kolkata, a litre of the fuel costs Rs 49.98 and 50.61, respectively.
“There is no transparency in the duties and taxes that are levied by the Government. This must be sorted out first,” Sunil Kale, President, BGTA said.
Tax component
Sales tax in Maharashtra is 24 per cent, in Delhi it is 12.5 per cent and in Punjab it is 8 per cent. Other levies like octroi take the total tax component in Maharashtra to 43 per cent, the goods carriers body , which has about 1,200 members, said.
“Diesel is the most important component in the total cost of operating a truck. With this increase, the cost has gone up by over 15 per cent and the total impact on the consumer, including all other costs will be about 20 per cent,” the body stated in a release .
“Let it be warned that the transport industry will not bear the brunt…with no hesitation to take vehicles off the road, if the survival is at stake and the Government continues to ignore our pleas,” the transport body cautioned.
GOVERNMENT RESPONDS
In an apparent attempt to settle frayed nerves, the Government carried a rejoinder in most national dailies explaining the rationale behind its move to hike prices.
The advertisement released by the Ministry of Petroleum and Natural Gas also urged States to lower local levies . “The State Governments do not shoulder the subsidy burden…The States can at least forego additional revenue (through increase in prices) to provide additional comfort to the common man,” it said.
The Union Government hiked the price of diesel by Rs 5 (excluding VAT) on September 14.