Jaipur: Leader of Opposition in the Rajasthan Legislative Assembly Tikaram Jully on Tuesday urged Chief Minister Bhajan Lal Sharma to reduce Value Added Tax (VAT) on petrol and diesel, alleging that the state continues to witness some of the highest fuel prices in the country despite his repeated demands for tax cuts while in the opposition.
Jully Reminds CM of Past Promises
In a statement, Jully reminded Sharma that he often raised the issue of high fuel prices before becoming chief minister and urged him to “at least take pity on the people of your home district Bharatpur” by reducing VAT across the state amid rising inflation.
Citing calculations by the Rajasthan Petrol Dealers Association, Jully said the state’s VAT structure — around 29.04% on petrol and 17.30% on diesel — automatically boosts government revenue whenever fuel prices increase.
Increased VAT Earnings
According to the association, VAT earnings per litre increased from Rs 23.22 to Rs 24.17 on petrol and from Rs 13.04 to Rs 13.62 on diesel between May 1 and May 19, 2026, following repeated hikes in fuel prices. The additional VAT earning on the rise in price from May 21 to May 25 is yet to be fully calculated as the dealers are awaiting clarification from the government.
Fuel Price Hikes in Jaipur
Fuel prices in Jaipur have risen four times over the past two weeks after four successive hikes in May. Petrol and diesel prices first increased by around Rs 3 per litre on May 15, followed by another Rs 0.90 hike on May 19. Prices were again raised by around Rs 0.87 to Rs 0.94 per litre on May 23 and by another Rs 2.61 to Rs 2.80 per litre on May 25.
Overall, petrol prices in Jaipur increased by nearly Rs 7.50 to Rs 8.20 per litre between May 1 and May 26, while diesel prices rose by around Rs 7.57 to Rs 8 per litre during the same period.
Petrol prices climbed from around Rs 104.72 to Rs 105.71 per litre on May 1 to Rs 112.66 to Rs 113.35 by May 26, while diesel prices rose from Rs 90.21 to Rs 90.49 to Rs 97.78 to Rs 98.39 per litre.
Call for Tax Relief
Jully argued that the additional VAT revenue gave the state government enough fiscal space to reduce taxes without affecting state finances. “When fuel prices rise, the burden ultimately falls on the common people. The government should now pass on relief instead of collecting additional revenue,” he said.
He said reducing VAT and road cess would directly benefit farmers, transporters and ordinary consumers already struggling with inflation and rising transportation costs.
The Congress leader pointed out that higher diesel prices directly impact agricultural operations and transportation, eventually increasing prices of essential commodities across sectors.
Sandeep Bhageria, treasurer of the Rajasthan Petrol Dealers Association, also urged the state government to pass on the benefit of the additional VAT revenue earned from rising fuel prices to citizens by reducing taxes on petrol and diesel.
