The prices of both petrol and diesel have been at their record high levels for around a week now, with the petrol price crossing the Rs 80 per litre mark on Saturday.
Though Naidu's ruling TDP didn't announce supporting the protests and national bandh call of the opposition parties led by the Congress, the activists and supporters of TDP were seen participating in the protests against the centre across the state.
Meanwhile, transporters are gearing up to put pressure on the government to reverse its fuel tax policy. The price of diesel increased by 15 paise; it is now Rs 77.47 per litre.
These fuel price figures were released by the BJP. "Bharat bandh evokes good response in Chhattisgarh Congress" Bharat Bandh against rising fuel prices evoked a good response in the BJP-ruled Chhattisgarh where many business establishments remained shut in major cities including Raipur and buses stayed off roads. Unlike the previous governments, the BJP has also failed to cut excise duty whenever global oil prices shoot up. Kerala has one of the highest fuel prices in the country. Kerala also has the ninth highest sales tax and other state levies on diesel, at 23.81 per cent; Andhra Pradesh imposes the highest at 28.08 percent (it had recently reduced it from 30.82 percent). In Mumbai, a litre of petrol costs Rs 87.77 and diesel comes for Rs 76.98, the notification said. This is a huge jump from the gross revenue collection of ~Rs88,600 crore in 2013-14 when the BJP took office.
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The cascading effect that this hike has is considered strong enough to fuel an overall price hike and destabilise the economy.
State-owned oil firms had in June previous year discarded the policy of changing fuel rates on the first and 16th of every month, and resorted to daily price revision instead.
Now the revision of the rates is notified every morning at 6 am. However, on June 16, 2017, a new scheme was implemented under which prices were to be revised every morning This shift from administrative price mechanism (APM) to dynamic pricing was done to ensure that the benefit of the smallest change in worldwide oil prices can be put into effect by dealers. Because the price is built up by excessive taxes on petrol and diesel. And now after Rs 2 cut in each, it may be sold around Rs 83.60 and 77.22 per litre, respectively.