Diesel Price in Maharashtra

Maharashtra is one of the third largest state in the country in terms of area and ranks second in terms of demography. The state contributes close to 25% of the industrial output of India and the GDP stands at Rs 27.96 lakh crore. With the phenomenal rate of the economy, the state is considered as the wealthiest state in India. Most of the population in the state mainly depends on the state maintained road transport vehicles and hence the demand for diesel is more in the state of Maharashtra.

Revision of Diesel Prices in Maharashtra

The state of Maharashtra witnesses daily revision of diesel prices since June 2017 after introducing Dynamic Fuel Pricing Technique in India. The main aim behind daily price change is to help the retail rate to reflect the current market conditions and to negate the volatility in the fuel prices. It also helps the system to be more transparent and enables for a smoother flow of fuel from refineries, depots to retail outlets. The new pricing model will pass on even the slightest change in the global market and currency exchange rate to the end users promptly.

The revision of prices takes place at 6 am in the morning at all the fuel filling stations automatically. In some of the fuel stations, the prices will be changed on a manual basis with human intervention.

Tax Rate on Diesel Prices in Maharashtra

The respective state governments in the country will impose a predetermined tax rate on fuel prices and it is known as the value-added tax. It is a form of consumption tax implied on a product or service by the state government wherein the value is added at each and every step of the supply changing beginning from the production and concluding with the sale.

The residents who reside in the following cities of Mumbai, Navi Mumbai & Thane have to pay 24.81% of state levied VAT on diesel and the in the rest of Maharashtra cities VAT is levied at 21.92% on petrol across all the fuel filling stations.