NCP(SP) demands VAT waiver on petrol, diesel from Maharashtra govt

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NCP(SP) demands VAT waiver on petrol, diesel from Maharashtra govt

Synopsis

With petrol at ₹111.12 per litre in Mumbai and the fourth consecutive fuel price hike since 15 May, NCP(SP)'s Jayant Patil has formally demanded that CM Devendra Fadnavis waive Maharashtra's VAT and surcharges on fuel — even as Fadnavis's own government investigates a 154% consumption surge in Akola and possible hoarding across multiple districts.

Key Takeaways

Jayant Patil of NCP(SP) wrote to CM Devendra Fadnavis on 28 May demanding immediate waiver of VAT and surcharges on petrol and diesel in Maharashtra.
This is the fourth consecutive fuel price hike since 15 May ; petrol rose by ₹2.61/litre and diesel by ₹2.71/litre .
Petrol is currently retailing at ₹111.12 per litre in Mumbai; diesel at ₹96.86 per litre .
The state has expanded petrol distribution by 23% and diesel by 52% amid a consumption surge, with Akola recording a 154% rise.
CM Fadnavis has flagged possible hoarding and commercial diversion of fuel, with multiple departments monitoring supply pipelines.

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.

Point of View

And any waiver, even partial, has fiscal consequences that compound in an already stretched budget. More telling is the Fadnavis government's own data — a 154% consumption spike in Akola and 70% surges across six districts suggest either demand-side panic buying or supply-side manipulation, neither of which a VAT waiver would fix. The opposition demand, while headline-friendly, sidesteps the harder question of why distribution pipelines are leaking before the fuel reaches farmers and consumers.
NationPress
12 Aug 2026

Frequently Asked Questions

What has NCP(SP) demanded from the Maharashtra government on fuel prices?
NCP(SP) leader and former State Finance Minister Jayant Patil has demanded that the Maharashtra government immediately waive the VAT and surcharges levied on petrol and diesel across the state, including in Mumbai, Thane, and Navi Mumbai. He made the demand via an official letter to Chief Minister Devendra Fadnavis on 28 May.
What are the current petrol and diesel prices in Mumbai?
As of Patil's letter dated 28 May, petrol is retailing at ₹111.12 per litre in Mumbai and diesel at ₹96.86 per litre. These prices reflect the fourth consecutive hike since 15 May, with petrol up ₹2.61/litre and diesel up ₹2.71/litre.
Why has fuel consumption surged abnormally in Maharashtra?
CM Devendra Fadnavis flagged a sharp rise in regional retail fuel consumption above seasonal norms, with Akola recording a 154% increase and six other districts reporting up to 70% higher consumption. Authorities are investigating possible hoarding and diversion of fuel for commercial use.
How has the Maharashtra government responded to the fuel crisis so far?
The state has expanded petrol distribution by 23% and diesel by 52% to stabilise market demand. The Food and Civil Supplies and Home Departments are jointly monitoring supply pipelines, and the administration is analysing commercial versus retail supply variations.
What is the VAT structure on fuel in Maharashtra?
The Maharashtra state government levies VAT and surcharges on petrol and diesel across the state, including in Mumbai, Thane, and Navi Mumbai. Patil's letter calls for an immediate waiver of these levies to provide relief to consumers amid rising inflation and consecutive fuel price hikes.
Nation Press
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