Petrol, diesel prices jump by Re 1 in 3 states on higher tax

NEW DELHI: Fuel prices in West Bengal, Maharashtra and Karnataka jumped by Re 1 a litre after the respective state governments tweaked their VAT/tax rates to shore up their finances but pump prices in all other states have remained unchanged for the last 17 days.
These states have grabbed the opportunity provided by state-run retailers holding pump prices — in spite of crude’s slide – as well as petrol and diesel sales dropping by 17% and 26%, respectively, due to the lockdown. Industry watchers said other states too could follow suit.
Sources said the retailers are not reducing prices to create headroom for another possible excise duty hike. They are also offsetting the Centre’s Rs 3-per litre duty-hike of March 14 to soak up the benefit of oil dropping 31% to $30/barrel. Petrol and diesel rates were left unchanged then. The companies also have to recover the premium on BS-VI fuels, which company executives said was not being charged at the moment.