Fuel prices have once again sparked a political debate after Union Petroleum minister Hardeep Singh Puri said petrol and diesel are cheaper in BJP-ruled states.
BJP leaders have repeated the claim on several occasions, but a closer look at state-wise prices shows the picture is more complex.
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What does the Centre claim?
Speaking at public events, Hardeep Singh Puri said petrol and diesel prices in BJP-ruled states are lower by around Rs 7-8 per litre compared to non-BJP states. He said the Centre had reduced excise duty multiple times since 2021, and BJP-ruled states also cut VAT to provide relief to consumers.
Fuel prices in India are decided not only by crude oil prices and central taxes but also by state-level Value Added Tax (VAT). Since VAT rates differ from state to state, retail fuel prices also vary, as per News18 reports.
Why do prices vary across states?
States such as Andhra Pradesh, Telangana, and Kerala often record some of the highest petrol and diesel prices because of higher VAT rates. At the same time, Delhi and several northeastern states usually have lower prices.
However, the report also notes that not all BJP-ruled states have low fuel prices. States like Madhya Pradesh and Bihar, both ruled by the BJP or its allies, have at times featured among states with comparatively higher petrol prices.
Opposition-ruled states are also under scrutiny
Some opposition-ruled states levy higher VAT rates to increase revenue. This has often led to fuel becoming more expensive in those states. Past reports have shown that Congress-ruled and other opposition-led states have also faced criticism over high petrol and diesel rates.
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The larger issue behind fuel pricing
Fuel prices are influenced by both central excise duty and state taxes. Because petrol and diesel are still outside the GST framework, states retain the power to impose their own VAT rates. As a result, fuel prices continue to differ sharply across the country.
