Pump price disparity: Higher VAT, local cesses drive fuel costs up in non-BJP-ruled states
New Delhi, May 23 -- Despite uniform central excise structures across the country, consumer fuel prices continue to vary sharply from one state to another.
The primary driver of this disparity is the differences in Value Added Tax (VAT) and additional local cesses imposed by state governments, with non-BJP and INDIA-bloc ruled states imposing substantially higher levies on retail consumers.
While the central excise duty charged by the Union government remains standard nationwide, the final retail price paid at the pump depends heavily on state-level taxation policies. States governed by the BJP generally witness lower petrol and diesel prices due to moderate VAT rates and fewer additional levies.
In contrast, several non-BJP and INDIA-...
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