The everyday hike in petrol and diesel prices is helping the state of Maharashtra by adding Rs. 700 crores to the state exchequer as value-added tax (VAT).
According to a senior official, Rs. 1 increase in petrol and diesel prices gives the state an additional VAT of Rs. 140 crores and Rs. 275 crores, annually. Therefore, the recent hike in petrol and diesel prices is expected to add approximately Rs. 700 crores to the exchequer. The lockdown which was imposed across the country to prevent the coronavirus outbreak has in a way broken the shackles of the already dampened economy. As per sources, the lockdown has said to have reduced the government revenue. Earlier, the government had increased the retail price of petrol to Rs 80.01/litre (increase by 52 paise) and diesel rate is Rs 69.92/litre (increase by 55 paise) in the city.
The rates of oil prices have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT. On Wednesday, it was reported as the 11th straight day of increase in rates. Oil companies earlier on June 7 restarted revising prices in line with costs. The freeze in rates was imposed in mid-March soon after the government hiked excise duty on petrol and diesel to shore up additional finances. Oil PSUs Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) instead of passing on the excise duty hikes to customers adjusted them against the fall in the retail rates that was warranted because of fall in international oil prices.
In the city, there are 243 Petrol Pumps out of which 223 pumps are run by dealers while 20 are company-owned. The business for these pumps had been slow during these lockdown days. However, with the relaxations, the business is touted to increase in Mumbai.
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