‘Price of petrol, diesel unusually increased’

MADURAI

The Tamil Nadu Chamber of Commerce and Industry president N Jegadeesan has said that the price of petrol and diesel has been unusually increased for the 12th consecutive day.

In a press release here on Saturday, he said that 35 paisa had been increased on petrol per litre and sold at ₹ 93.14 and 36 paisa hiked on diesel per litre and sold at ₹ 86.55 today. The rise has led to a significant increase in the prices of essential commodities and other consumable products.

The trade and industry and general public are facing a huge impact on their daily lives, due to price hike. When the union budget was tabled on February 1, petrol was sold at ₹ 89.37 and diesel at ₹ 82.29 per litre.

In the budget an Agriculture Infrastructure and Development Cess (AIDC) of ₹ 2.50 has been imposed on petrol and ₹ 4 on diesel and it was informed that other duties and cess as revised, consequent to imposition of AIDC and overall there would be no additional burden on the consumers.

But while on releasing the comments on Union Budget on that day, Tamil Nadu Chamber of Commerce and Industry has stated that the price on petrol and diesel could be increased due to AIDC overtime. Similarly, within 20 days, petrol price was increased by ₹ 4 and diesel by ₹ 4.30 per litre. The basic price of petrol and diesel per litre is at ₹ 31.82.

The Centre has levied excise duty at ₹ 32.98 on petrol and ₹ 31.83 on diesel/litre and the State government levied Value Added Tax on petrol at ₹ 19.48 (34%) and on diesel at ₹ 15.33 (25%).

Apart from this, road infrastructure and development cess has also been levied at a maximum of 69% against taxes alone which is highest in the world.

Due to continuous hike in petrol and diesel prices, the public transport and lorry operators have now announced 25% increase in their freight charges. Due to this, the prices of all essential commodities will go up, and vegetables, fruits brought by farmers by vehicles to the market will go up.

Due to the COVID-19 pandemic, the trade and industry and general public have already been severally affected over the past year which have only recovered slightly. At this juncture, the increase in petrol and diesel prices have now weakened the trade and industry and caused severe financial crisis in their business.

The Tamil Nadu Chamber of Commerce and Industry urges the Centre and state governments to immediately roll back the increase in price of petrol and diesel and take tangible steps to reduce the excise and VAT levied which would save the economy, Mr. Jegatheesan said.

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