Rajasthan Fuel VAT Cut Urged by Dealers

Jaipur, May 21 (PTI) Rajasthan Petroleum Dealers Association (RPDA) on Thursday requested Chief Minister Bhajanlal Sharma to reduce VAT on petrol and diesel to provide relief to farmers and the common people.

In a memorandum presented to the chief minister, the association said global crude oil prices had risen due to the ongoing Iran-US conflict, leading to an increase in fuel prices in India on May 15 and May 19.

It said the hike in petrol and diesel prices was increasing the cost of essential commodities as transportation costs directly and indirectly affect prices of daily-use items.


Association president Rajendra Bhati said Rajasthan currently levies 29.04 per cent VAT on petrol and 17.30 per cent on diesel, and the state's revenue automatically increases whenever fuel prices are raised.

He claimed that the recent fuel price hike increased the state's revenue by 95 paise per litre on petrol and 58 paise per litre on diesel.

Bhati requested the government to reduce the additional revenue burden arising from the hike and provide relief to farmers and consumers facing inflationary pressure.