The hike in fuel prices is adding pressure on the common man’s purse. The petrol price has gone up by Rs 5 and diesel is up by Rs 3 per litre. Travelling is no longer cheap. The middle class is now opting for local transport rather than personal cars to cut down travel cost.
The government earns most of its revenue from taxes on petrol and diesel. Though all the states have revised the values of fuel, Maharashtra has done the opposite. It has decided to cut down sales tax by 2 percent. This will reduce the price of petrol by 80 paise and diesel by 60 paise per litre than the pre-hike value of fuel! The Maharashtra government has adopted a populist measure ahead of the central polls, which is a year away.
I feel the government of Maharashtra has taken a wise decision by cutting down the sales tax on petrol.At least some amount of burden is released. Hope other other states too follow the rule.
Not only Maharashtra, but also Tamil Nadu has proposed similar cut down in fuel prices. Other states needs to follow the same example. The rise is smart attempt by the government to keep the vehicle owners happy and also the oil companies running. But the show will bust if crude oil prices rise further.
Maharashtra has made a wise decision in cutting down on fuel prices. The government has made a significant change in life of people in that state. wonder why other states have not followed it.
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