AP now levies around Rs 4 a litre of value added tax on petrol and diesel, earning around Rs 2,240 crore a year through state taxes on fuel. Petrol in Mumbai scaled to Rs 88.12, up 23 paise, while diesel was priced at Rs 77.32, up 23 paise, on Monday. The government is of the view that a weak rupee along with high worldwide crude oil prices can impact fiscal deficit as well as current account deficit. Fuel prices in Delhi are the cheapest among all metros and most State capitals due to lower taxes.
The other highest centres include Nanded where petrol was retailing at Rs 89.93 per litre and diesel Rs 77.90, and Amravati Rs 89.93 and Rs 78.84. The nationwide bandh affected the bus and train services. The government, he said, anticipates that global oil prices, which together with a drop in the value of rupee has been fuelling the fuel price rise to record levels, will moderate in coming days to take pressure off. Bharat Bandh evokes mixed response in Punjab, Haryana The nationwide call of Opposition-sponsored "Bharat Bandh" against rising fuel prices evoked a mixed response in Punjab, Haryana and Union Territory Chandigarh.
While the Bharatiya Janata Party also claimed that the shutdown was "unsuccessful" because people understand the reasons why petrol and diesel prices were going up, the Congress termed the bandh as successful.
Opposition parties have called for a nation-wide "Bharat Bandh" on Monday (September 10) to protest against the spiralling fuel prices.
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As fuel prices continued to rise today to record high levels, petrol prices breached the Rs 90 mark in a small Maharashtra town where the price could be the highest in India.
Manmohan Singh hit out at the BJP for "miserably" failing to control fuel prices. AICC Chhattisgarh in-charge and senior leader PL Punia, state Congress chief Bhupesh Baghel joined the party workers in Raipur in appealing to businessmen to down their shutters. Union Minister Ravi Shankar Prasad said: "Everyone has a right to protest but what is happening today?"
Meanwhile, the BJP said the hike in fuel prices was a "momentary difficulty" and claimed the shutdown was a complete failure. Rajasthan and Andhra Pradesh has already cut down state taxes on both fuels. "Who is responsible?" BJP President Amit Shah also met Union Minister Dharmendra Pradhan to discuss the rising fuel price issue.