Maharashtra Fuel VAT Cut Unlikely Amid Debt Pressure

Maharashtra Fuel VAT Cut Faces Hurdles As Prices Surge

Maharashtra Fuel VAT has once again become a major political and economic issue after fresh hikes in petrol and diesel prices triggered outrage across the state. While the Central government has advised states to consider reducing VAT on fuel, the Maharashtra government has so far avoided making any commitment, citing severe financial pressure.

According to senior finance department officials, the state’s worsening fiscal condition has made any immediate reduction in VAT extremely difficult. Maharashtra’s total debt is projected to touch nearly ₹9.32 lakh crore, while large-scale welfare schemes and supplementary budgetary demands continue to put enormous pressure on the treasury.

The Finance Department is currently under the direct charge of Devendra Fadnavis, and sources indicate that any decision regarding petrol and diesel VAT will depend entirely on the state’s financial calculations.

At present, Maharashtra levies nearly 25 percent VAT on petrol and 21 percent VAT on diesel. Earlier, the state had reduced VAT on Aviation Turbine Fuel (ATF) from 18 percent to 7 percent to support the aviation sector, but a similar relief for common fuel consumers appears uncertain.

Mumbai Fuel Prices Witness Fresh Spike

Fuel prices in Mumbai have witnessed another sharp increase. Petrol prices reportedly climbed from ₹108.49 to ₹111.21 per litre, marking a rise of ₹2.72, while diesel prices increased from ₹95.02 to ₹97.83 per litre, registering a hike of ₹2.81.

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Transport sector representatives claim that fuel prices have risen by nearly ₹8 per litre in just 11 days. Repeated hikes within a short period are creating serious operational challenges for logistics operators and commercial vehicle owners.

Opposition Intensifies Attack On Government

Opposition leaders have launched aggressive criticism over the rising fuel prices. Priyanka Chaturvedi mocked the latest petrol price in Mumbai, saying, “Petrol has now reached the symbolic figure of 111.”

Meanwhile, Harshvardhan Sapkal questioned why fuel prices in India continue to rise despite declining crude oil prices in the international market.

In another major political development, Supriya Sule is reportedly preparing statewide protests under the banner of the Nationalist Congress Party (Sharad Pawar faction), targeting the government over inflation and fuel-related issues.

Transport Industry Warns Of Severe Crisis

Transport associations have warned that continuous fuel price hikes are severely affecting business sustainability. Industry representatives argue that unpredictable fuel revisions make it difficult to plan freight rates and operational costs.

Fuel alone contributes nearly 55 percent of truck operating expenses, while additional burdens such as tolls, insurance, tyre costs, maintenance, and finance charges have already escalated sharply.

Several transport operators claim that in some regions, vehicles are being kept off the roads due to rising operational losses. Industry estimates suggest that certain operators are suffering daily losses of nearly ₹3,500 per vehicle.

Experts warn that if fuel prices continue to rise without policy intervention, the impact could extend far beyond the transport sector and disrupt the broader supply chain and consumer market across Maharashtra.