Congress party led by Rahul Gandhi is staging a country-wide protest today, against the surging fuel prices under the Modi government. Price of petrol rose by 3.78% since August 1, while diesel grew dearer by 6.47% in the same duration. In Mumbai, the prices of petrol and diesel on Sunday are Rs 87.89 per litre diesel Rs 77.09 per litre respectively.
Chandrababu Naidu said that orders for bringing into effect the new rates of petrol and diesel would be issued on Monday and will be effectual from Tuesday morning. The spike in prices has renewed calls for cut in excise duty but Finance Minister Arun Jaitley has remained non-committal, saying global oil prices are volatile and have not shown any linear movement. Petrol dealers said that for the last two weeks, fuel prices have been increasing continuously at least by 20 paise to 30 paise every day.
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On the other hand, the diesel costs Rs 75.36, Rs 76.98 and Rs 76.64 in the cities of Kolkata, Mumbai and Chennai respectively. Nimish Patel, chairman of GST Committee of All India Motor Transport Congress said that the combination of rising prices of crude oil and simultaneous weakening of Rupee against the Dollar has played a major role in a net hike in prices. However, prices vary in different parts of the state due to local tax additions.
If the reports coming from the power corridors of Amaravati, Telugu Desam Party president and Andhra Pradesh chief minister N Chandrababu Naidu is learnt to have made a decision to give relief to the citizens by reducing the Value Added Tax (VAT) on diesel and petrol in the State. Nearly half of the retail selling price of the two fuels is made up of Central and State taxes.