Petroleum dealers urge state govt to cut VAT on fuel

Jaipur: Rajasthan Petroleum Dealers Association Thursday written to chief minister Bhajan Lal Sharma seeking relief for public and farmers through a reduction in Value Added Tax (VAT) on petrol and diesel.

The association pointed out that while the Centre has reduced excise duty earlier, cutting petrol duty from Rs 13 to Rs 3 and from Rs 10 to zero for diesel, the state continues to levy VAT at 29.04% on petrol and 17.30% on diesel. Because VAT is percentage‑based, the state’s revenue automatically rises with every price increase.



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. Dealers argued that this incremental gain, 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 govt to follow the Centre’s example and pass on relief to consumers, stressing that reducing VAT would not harm the state’s existing revenue base but only neutralize the automatic windfall from recent hikes. It 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. “Whenever diesel prices rise, inflation automatically increases as most daily‑use commodities are directly or indirectly linked to transport costs,” Bhati said in the letter.

HPCL assures stable fuel supply

Jaipur: 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 1–20, 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, it said.

HPCL emphasized 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, it added.