New Delhi, May 23 -- As petrol and diesel prices were hiked for the third time on Saturday, 23 May - with the cumulative price hike on these essential fuels adding to Rs.5 per litre - the BJP-led central government claimed fuel prices were higher in Opposition ruled states, Moneycontrol reported.

The prices of petrol and diesel vary across states because of different rates of Value Added Tax (VAT) and additional local cesses levied by different state governments.

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.

"The states with the highest VAT impose effective rates of 30% and more, layered with per-litre ...