VAT, cess and Syria mess causing petrol price hike says petrol pump dealers
Bhopal: Surpassing the mark of Rs 80/liter the petrol prices continue to soar in Madhya Pradesh on Tuesday. Petrol pump dealer’s association president Ajay Singh said, “Ongoing Syria tension is the main reason behind increasing prices of petrol and diesel in the country.”
However he also acknowledged the contribution of 28 per cent Value-Added Tax (VAT) and Rs 4 per liter cess imposed by the MP government to the price rise. “VAT on petroleum product is high in MP and now Syria tension has added fuel to fire. Consequently the prices are increasing daily,” he said, “we are helpless; Organization of the Petroleum Exporting Countries
(OPEC) has also increased the rates as demand now exceeds the supplies. Countries have started hoarding the stocks.” Singh further said, “State government has increased cess by Rs0.50. Earlier, the government in October slashed the VAT on prices of petrol by three per cent and diesel by five per cent, following the Centre’s decision to cut excise duty on fuel. The move, the Centre claimed, was taken in as an attempt to “cushion the retail price of petroleum products against the impact of their rising international prices.