Petrol price was cut by 13 paise a litre and diesel by 9 paise a litre on Tuesday in line with the softening of international crude oil and product prices.

Over the last week, public sector oil retailers reduced fuel prices by almost 60 paise a litre on petrol and 43 paise a litre on diesel. The prices varied from State-to-State depending on local taxes and levies.

Petrol is being sold at ₹77.83 a litre, while diesel retails at ₹68.88 a litre in the Capital.

Consumers, however, have not got any relief largely because of the high tax rates levied on auto fuel by both the Centre and State governments that account for almost half the sale price.

The Centre rakes in ₹19.48 for every litre of petrol sold and ₹15.33 for every litre of diesel sold in the country. On May 30, consumers in Kerala got a partial respite with the State government implementing a Value Added Tax waiver of ₹1 a litre on both petrol and diesel. The Centre would want other States to follow suit and ease the pressure on prices and in the long run bring it under the Goods and Services Tax regime.

However, this is not likely to happen, according to former Petroleum Secretary, SC Tripathi. “Who would like to let go of free revenues. Even if I was there I would have done the same — not let go. The States or the Centre would not like to let go of the easy revenues accrued through the taxes on auto fuels.”

States such as Maharashtra have the highest prices for auto fuel with diesel sold at ₹73.33 a litre and petrol at ₹85.65 a litre in Mumbai, primarily driven by high State levies in the form of VAT.

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