Hyderabad: The joy of motorists over the Rs 2 cut in excise duty and scrapping of Rs 6 additional excise duty on fuel prices announced in the Union Budget on Thursday was shortlived.
The Centre almost immediately announced that fuel prices would remain unchanged as the excise duty cut would be adjusted towards the new road cess of Rs 8.
“We have not received any communication from the oil marketing companies (OMCs) about reduction in prices due to the excise duty cut. We were informed that a new road cess was introduced which would be adjusted against the excise duty cut,” said Mr G. Vinay Kumar, former general secretary of TS Petroleum Dealers Association.
By 8.45 pm on Thursday, dealers received communication from OMCs that Friday’s fuel prices would remain unchanged in the daily price revision. Petrol was sold at Rs 77.21 per litre and diesel Rs 69.51 on Thursday.
Motorists who were expecting the Centre to make an announcement on bringing fuel under the GST regime as it would bring down prices were disappointed as the finance minister Arun Jaitley made no mention of it.
State government are imposing higher VAT on fuel, because of which the prices have remained high. Bringing fuel under GST would have led to abolition of VAT. But state governments are against this as it would mean a big loss to the exchequer.
The Centre is holding consultations with states to convince them on the GST issue, but there has been little progress so far.
