Petrol and diesel prices in Madhya Pradesh shot up by around Rs 4.5 per litre from Saturday with the state government raising additional duty on these petroleum products by Rs two, which comes a day after the Centre increased taxes on them.
Presenting the Budget for 2019-20, Finance Minister Nirmala Sitharaman Friday raised excise duty and road and infrastructure cess on the auto fuels by Rs 2 per litre each to raise over Rs 28,000 crore.
State minister Jitu Patwari said, "The state government was forced to take a decision of levying additional tax after the Centre reduced the Madhya Pradesh's share by Rs 2,677 crore in the central budget presented on Friday."
The Congress had promised in its poll manifesto ahead of the Assembly election that prices of petrol and diesel will be reduced by Rs five.
When asked about the promise, the Minister for Sports and Youth Welfare said, "State's budget is to be presented only four days from now. The printing of the budget has already started. In this situation, we have to compensate the loss incurred by the sudden reduction of state's share by the Centre."
With the increase in the central and state taxes, the prices of petrol and diesel have gone up by around Rs 4.5 per litre (depending on cities) in the state.
The minister also questioned the increase in duty on auto fuel by the Centre. "When it was linked to the crude oil prices in international market, why was the duty hiked?" he asked.
Meanwhile, talking to PTI, Madhya Pradesh Petrol Pump Owners Association's president Ajay Singh said the state government's move may not benefit it in terms of revenue.
"After the increase in additional tax by the state government, diesel in MP has become costlier by Rs 1.60 per litre and Rs 5.40 per litre as compared to neighbouring Maharashtra and Uttar Pradesh respectively," Singh said.
So the trucks and other vehicles travelling through MP would rather fill the diesel from these states, where the petrol pumps are located on the borders, he added.
Singh said after the hike in excise duty and cess by the centre and levy of additional tax of Rs two by the state, petrol prices in Bhopal has gone up to Rs 78.14 (on Saturday) from Rs 73.61 per litre (on Friday).
Similarly, diesel prices reached Rs 70.06 (on Saturday) from Rs 65.63 per litre (on Friday), he said.