Price of petrol rose by 3.78% since August 1, while diesel grew dearer by 6.47% in the same duration. The primary transportation fuel saw a hike of 12 paise, whereas diesel went up by 11 paise across major cities in India.
Naidu accused the NDA government at the Centre of misleading the people by attributing the steep hike in the prices of petrol and diesel to growing crude oil prices globally.
The prices of petrol and diesel touched a new high with Mumbai paying the maximum among the four metros. "There were hikes of about Rs 1.5 per litre in the earlier system when the revision took place on fortnightly basis", said Arvind Thakkar, president of Federation of Gujarat Petroleum Dealers Association, the apex body of all local associations of petrol pump operators in the state.
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Naidu, the chief of the Telugu Desam Party that was part of the ruling National Democratic Alliance till recently, made the announcement in the state assembly after holding a high-level meeting in the wake of the Bharat Bandh call given by the Congress and other opposition parties in the country.
"The way the prices are increasing with each passing day, it seems that it would cross Rs. 100 per litre". The spike in prices has renewed calls for cut in excise duty but Finance Minister Arun Jaitley has remained non-committal, saying global oil prices are volatile and have not shown any linear movement. In Chennai, petrol costs Rs 83.91 and diesel Rs 76.98. They blame the government's unwillingness to cut excise duty for the high fuel prices and consumer burden.
The VAT on petrol has been reduced from 30 to 26 per cent and from 22 to 18 per cent on diesel, Rajasthan Chief Minister Raje announced at a public gathering in Rawatsar in Hanumangarh district on Sunday. Besides this, the states levy Value Added Tax (VAT) is all there.