The Rajasthan Petroleum Dealers Association has written to Chief Minister Bhajan Lal Sharma, urging a reduction in Value Added Tax (VAT) on petrol and diesel to provide relief to the public and farmers. The letter highlights that while the central government has reduced excise duty on petrol from Rs 13 to Rs 3 and on diesel from Rs 10 to zero, the state continues to levy VAT at 29.04% on petrol and 17.30% on diesel. Since VAT is percentage-based, the state's revenue automatically increases with every price hike.
According to figures shared in the letter, Rajasthan's VAT and cess revenue per litre rose from Rs 39.51 on April 1 to Rs 41.04 on May 19. The dealers argue that this incremental gain of 58 paisa on diesel and 95 paisa on petrol should be rolled back to ease inflationary pressure. Association president Rajendra Singh Bhati urged the state government to follow the Centre's example and pass on relief to consumers. He stressed that reducing VAT would not harm the state's existing revenue base but only neutralize the automatic windfall from recent hikes. The association also suggested lowering road cess for additional relief.
Global crude prices have risen sharply due to the Iran–US conflict, leading to recent fuel price hikes in India on May 15 and May 19. Bhati noted in the letter, 'Whenever diesel prices rise, inflation automatically increases as most daily-use commodities are directly or indirectly linked to transport costs.'
HPCL Assures Stable Fuel Supply
Hindustan Petroleum Corporation Ltd (HPCL) has reassured customers that fuel supplies across Rajasthan, including Jaipur, remain stable and adequate, with uninterrupted operations at all retail outlets. Between May 1 and 20, HPCL recorded strong growth in supplies, with petrol sales rising to 50,575 kilolitres against historical sales of 42,501 KL, a 19% increase. Similarly, diesel sales reached 1.14 lakh KL compared to 91,894 KL, marking 24.5% growth. Jaipur outlets alone reported 18.4% growth in petrol and 21.3% in diesel.
HPCL emphasized that there is no shortage of fuel in Jaipur, with regular replenishment and continuous supply support. Officers and field teams are actively monitoring conditions, engaging with dealers and customers to discourage panic buying.
