MP Congress demands ₹10/litre fuel cut, blames state taxes for India's costliest petrol
Synopsis
Petrol has crossed ₹111 per litre in parts of Madhya Pradesh — among the steepest in the country — after a 90 paise hike, the second in a week. Congress leader Kamal Nath's central argument cuts through the noise: it is not global crude but the state's own 29% VAT that is the real culprit, costing MP residents ₹13 more per litre than their counterparts in neighbouring Uttar Pradesh.
Key Takeaways
Petrol rose by 90 paise per litre on Tuesday, 19 May — the second hike within a week in Madhya Pradesh .
Post-hike prices: petrol at ₹110.75/litre in Bhopal , crossing ₹111 in Ujjain ; diesel at ₹95.91/litre in Bhopal.
Former CM Kamal Nath (Congress) demands an immediate ₹10 per litre reduction and blames the state's 29% VAT on petrol.
MP petrol is on average ₹13 per litre costlier than in Uttar Pradesh ; diesel is ₹4 higher .
State Congress president Jitu Patwari cited a ₹3.90/litre cumulative rise in four days in a post on X.
Congress also alleges revenue leakage: truck operators reportedly refuelling in neighbouring states to avoid MP's higher rates.
The Opposition Indian National Congress in Madhya Pradesh on Tuesday, 19 May launched a sharp attack on the Bharatiya Janata Party-led Centre and the state government over the latest hike in petrol and diesel prices, demanding an immediate reduction of ₹10 per litre to ease the burden on residents. The criticism came after fuel rates rose for the second time within a week, with petrol and diesel becoming costlier by 90 paise per litre effective Tuesday.
Current Fuel Prices Across Madhya Pradesh
Following the latest revision, petrol in Bhopal climbed to ₹110.75 per litre and diesel to ₹95.91 per litre. In Ujjain, petrol crossed ₹111 per litre, while Indore and Jabalpur recorded ₹110.79 per litre and Gwalior at ₹110.69 per litre. Diesel stands at ₹96.40 per litre in Ujjain, ₹95.97 in Indore, ₹95.98 in Jabalpur, and ₹95.86 in Gwalior.
Kamal Nath's Case Against State Tax Structure
Senior Congress leader and former Chief Minister Kamal Nath argued that international crude prices are not the primary driver of high fuel costs in the state — the state government's tax structure is. He pointed out that Madhya Pradesh levies 29 per cent VAT along with ₹2.5 and 1 per cent cess on petrol, while diesel attracts 19 per cent VAT with ₹1.5 and 1 per cent cess.
'The government is citing international factors behind the increase in fuel prices. But the truth is that, for the people of Madhya Pradesh, state government taxes are a much bigger reason for the price rise than external factors,' Nath said.
He calculated that citizens are paying more than ₹30 per litre in taxes on petrol and more than ₹20 per litre on diesel to the state government alone. Notably, Nath also highlighted a stark inter-state disparity: petrol in Madhya Pradesh is on average ₹13 higher per litre than in neighbouring Uttar Pradesh, while diesel is ₹4 higher per litre.
Revenue Leakage and Border District Impact
Nath, who previously served as Union Commerce Minister during the UPA government, also argued that the high tax burden is counterproductive for the state exchequer. He claimed that truck operators and heavy vehicle owners are increasingly choosing to refuel in neighbouring states to avoid Madhya Pradesh's steeper rates.
'Due to high diesel prices, truck operators and other heavy vehicle owners prefer to refuel in neighbouring states instead of Madhya Pradesh. People living in border districts are also purchasing fuel from there,' he said.
State Congress Joins the Offensive
State Congress president Jitu Patwari reinforced the attack, citing a cumulative rise of ₹3.90 per litre in just four days. In a post on X, Patwari said: 'In just four days, petrol and diesel prices have increased by ₹3.90 per litre, and the BJP government is still making false claims of controlling inflation.' He added that the successive hikes were raising household expenses, increasing farming costs, and squeezing middle-class budgets.
The BJP government in Madhya Pradesh and the Centre are yet to formally respond to the Congress demands. With fuel prices now among the highest in the country for the state, pressure on the ruling dispensation is likely to intensify ahead of local political cycles.
Point of View
It is a daily reality for border-district residents and truckers. The BJP government's standard deflection of blaming global crude prices becomes harder to sustain when a neighbouring BJP-ruled state charges significantly less. What mainstream coverage misses is the revenue paradox Nath raises: punishingly high VAT rates may actually be shrinking the tax base by driving fuel purchases across state lines. The real question is whether the Madhya Pradesh government will act before the political cost of inaction outweighs the revenue it is trying to protect.
NationPress
6 Aug 2026
Frequently Asked Questions
What is the current petrol price in Bhopal after the latest hike?
After the 90 paise per litre increase on 19 May, petrol in Bhopal stands at ₹110.75 per litre and diesel at ₹95.91 per litre. Prices are even higher in Ujjain, where petrol has crossed ₹111 per litre.
Why does Congress blame state taxes rather than global crude prices for high fuel costs in MP?
Congress leader Kamal Nath argues that Madhya Pradesh levies 29% VAT plus additional cess on petrol, resulting in a state tax burden of over ₹30 per litre. He contrasts this with neighbouring Uttar Pradesh, where petrol is on average ₹13 cheaper, to argue that state policy — not international factors — is the primary driver.
What exactly has Congress demanded from the Madhya Pradesh government?
The Congress has demanded an immediate ₹10 per litre reduction in both petrol and diesel prices by cutting state taxes. Former Chief Minister Kamal Nath made the demand on 19 May, calling the current tax structure unjustifiable given its impact on households, farmers, and small businesses.
How much have fuel prices risen in the past four days in Madhya Pradesh?
According to State Congress president Jitu Patwari, petrol and diesel prices have risen by a cumulative ₹3.90 per litre over just four days. The latest 90 paise hike on Tuesday was the second increase within a week.
What is the revenue leakage argument made by Kamal Nath?
Nath claims that because Madhya Pradesh's fuel prices are significantly higher than those in neighbouring states, truck operators and residents of border districts are choosing to refuel outside the state. He argues this is causing the state to lose tax revenue — the opposite of what high VAT rates are intended to achieve.
