Petrol and diesel prices will increase by Rs 2 from Monday, June 1, following the state government decision to hike the cess levied on the two fuels.
Petrol price in the city will increase to Rs 78.31 per litre from Rs 76.31. The diesel retail rate will go up to Rs 68.21 per litre from Rs 66.21.
Besides the 26% and 24% value added tax (VAT) on petrol and diesel, respectively, the state government levies a cess on the fuels.
The government on Saturday issued a notification increasing the cess for petrol to Rs 10.12 per litre from Rs 8.12. The cess on diesel is to rise to Rs 3 per litre from Re 1.
A member of an association of petrol dealers said that after the rate changes the price of diesel in the state would be higher than in neighbouring states like Karnataka. “Trucks and other large diesel vehicles going from Maharashtra to other states like Karnataka are likely to refill their tanks there. Thus, though the government has increased the cess to generate more revenue, the move may negatively impact the diesel sales in Maharashtra,” the association member, who requested anonymity, said
An oil marketing company official said more clarity was awaited from the government on the changed rates but in all probability the rise in price of both the fuels would be Rs 2 per litre. “At times, oil marketing companies absorb a portion of the increased price. Hence, we are waiting for the final price calculation,” the official said.
The official said tax collection from petrol and diesel had dipped heavily in the Covid-19 lockdown over the past few months. “Even in May, the sale of petrol was just around 50% and that of diesel around 60% of average sales. Consequently, the tax collection from petrol and diesel dipped by 40%,” the official said.