Petrol and diesel prices to increase by Rs 2 in Maharashtra from tomorrow, June 1
The prices of petrol and diesel fuel is set to increase further in Maharashtra. This Rs 2 hike will be effective from June 1, it is a result of the state governments decision to hike the cess on fuel.
The cess will increase from Rs 8.12 to Rs 10.12 per litre for petrol. For diesel, this number will rise from Re 1 to Rs 3. With this increase, prices of petrol in Mumbai now stand at Rs 78.31, diesel now costs Rs 68.21.
The lockdown as a result of the COVID19 pandemic has put a large dent on the state's revenue generation. This is especially true of its earnings from the sale of fuel, given the large drop in vehicular movement. Aside from the cess, a Value Added Tax (VAT) of 26 per cent (petrol) and 24 per cent (diesel) is levied.
In early May, the Government has decided to hike the excise duty on both petrol and diesel prices. It entailed a Rs 10 per litre on petrol and Rs 13 litre on diesel. But this increase was absorbed by oil marketing companies and not passed on to customers.
Fuel prices continue to rise in India, despite international crude prices remaining low over the last few months. Fuel is India's largest import, but the pandemic has heavily dented revenue generation as economic activity drop heavily.