NCP(SP) demands VAT waiver on petrol, diesel from Maharashtra govt
Synopsis
Key Takeaways
Jayant Patil, senior leader of the Nationalist Congress Party (Sharadchandra Pawar) and former State Finance Minister, on Thursday, 28 May formally demanded that the Maharashtra government immediately waive the Value Added Tax (VAT) and surcharges on petrol and diesel. Patil addressed his demand through an official letter to Chief Minister Devendra Fadnavis, citing mounting economic distress on ordinary citizens.
The Core Demand
Patil argued that the unrelenting surge in fuel prices has pushed the common man to a breaking point, making immediate state-level tax relief a necessity rather than an option. He specifically called on CM Fadnavis to exercise proactive leadership in waiving VAT and surcharges levied across the state, including in Mumbai, Thane, and Navi Mumbai.
'Inflation has skyrocketed; the prices of edible oil, vegetables, and essential commodities have witnessed a massive surge, directly impacting the common man. To make matters worse, the skyrocketing prices of petrol and diesel are adding fuel to the fire,' Patil stated in his letter.
Fuel Price Trajectory
Patil pointed out that this marks the fourth consecutive price hike since 15 May, with petrol rising by ₹2.61 per litre and diesel by ₹2.71 per litre. As of his letter, petrol was retailing at ₹111.12 per litre in Mumbai, while diesel stood at ₹96.86 per litre. He also cited the ongoing conflict in Gulf countries as a factor placing immense strain on India's economic stability.
What the Government Has Said
The demand comes days after CM Fadnavis on Tuesday flagged a sharp rise in regional retail fuel consumption well above normal seasonal trends. Speaking after the weekly Cabinet meeting, Fadnavis said the state's Food and Civil Supplies and Home Departments are jointly monitoring supply distribution pipelines.
The state has reportedly expanded petrol distribution by 23 per cent and diesel by 52 per cent to stabilise market demand. Fadnavis indicated that authorities are examining possible hoarding and the diversion of fuel for commercial use.
District-Level Surge
Specific regions are recording pronounced consumption spikes. Akola reported an increase of 154 per cent, while several districts — including Chhatrapati Sambhajinagar, Beed, Bhandara, Buldhana, Gondia, and Hingoli — recorded up to a 70 per cent climb in regular market consumption, according to the Chief Minister. The administration is analysing variations between commercial and retail fuel supply to ensure retail resources reach agricultural and consumer lines.
Political Context
The NCP(SP)'s demand puts pressure on the ruling Mahayuti alliance — of which Fadnavis's Bharatiya Janata Party (BJP) is the dominant partner — to act on fuel costs at a time when inflationary pressures are politically sensitive. This is not the first time opposition leaders have sought VAT relief; similar demands have surfaced during previous fuel price cycles, with state governments typically citing revenue constraints as a reason for inaction. Whether Fadnavis responds substantively or defers to the Centre will signal the government's political calculus ahead of upcoming local body elections.