New Delhi: Rajasthan Petroleum Dealers Association (RPDA) on Thursday requested Chief Minister Bhajanlal Sharma to reduce VAT on petrol and diesel to provide relief to farmers and the common people.

Follow The PSUWatch Channel on WhatsApp

In a memorandum presented to the Chief Minister, the association said global crude oil prices had risen due to the ongoing Iran-US conflict, leading to an increase in fuel prices in India on May 15 and May 19.

It said the hike in petrol and diesel prices was increasing the cost of essential commodities as transportation costs directly and indirectly affect prices of daily-use items.

Association president Rajendra Bhati said Rajasthan currently levies 29.04 percent VAT on petrol and 17.30 percent on diesel, and the state's revenue automatically increases whenever fuel prices are raised.

Follow PSU Watch on LinkedIN

He claimed that the recent fuel price hike increased the state's revenue by 95 paise per litre on petrol and 58 paise per litre on diesel.

Bhati requested the government to reduce the additional revenue burden arising from the hike and provide relief to farmers and consumers facing inflationary pressure.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)