Across the state, petrol prices have breached the mark of Rs 88 per litre, while diesel is around Rs 76 per litre, as mentioned by the All India Petrol Dealers Association (AIPDA).
The Congress has called for a nationwide protest on Monday against the rise in fuel prices and drop in rupee's value against the United States dollar. In Bengaluru, petrol price is Rs 83.36 and diesel is Rs 75.18. "The effect of this benefit has kept inflation under control despite rise in fuel prices". Yadav said, "While the opposition is protesting, prices of petrol and diesel have been hiked again this morning. Why is the common man being made to pay the price for the miscalculations on part of the Central government?" asked the MNS president.
Mumbai has the highest tax rates among the metros. "If taxes are cut, prices will decline significantly". Because the price is built up by excessive taxes on petrol and diesel.
However, many feel that by attributing the price hike only on worldwide factors must be taken with a pinch of salt, the BJP government is trying to shrug away its own responsibility of bringing fuel prices under the ambit of the Goods and the Services Tax (GST). In Hyderabad, petrol costs Rs 85.60 and diesel Rs 79.22. The tax imposed by the Centre on petrol (including customs and excise duties, and other cesses) is 52.75 per cent, and on diesel is 38.53 per cent. This led to its excise collections from petro goods more than doubling in last four years - from Rs 99,184 crore in 2014-15 to Rs 2,29,019 crore in 2017-18.
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"We have given income tax relief to the tune of Rs 98,000 crore and also Rs 80,000 crore on account of GST rate cuts on 334 commodities", he said. The call for the Bharat Bandh has been supported by several political parties at the national and the regional level. "Similarly, the excise duty on diesel was Rs 3.46 per litre and today it stands at Rs 15.33 per litre", he said.
While fiscal deficit means expenditure higher than income, current account deficit (CAD) is the difference between inflow and outflow of foreign currency.
"The government can not disturb fiscal maths by cutting excise duty", he said.