Jully reminds Sharma of BJP’s fuel tax protests, urges to forgo additional VAT gains from hike

Jaipur: Leader of Opposition in the Legislative Assembly Tikaram Jully Tuesday urged Chief Minister Bhajan Lal Sharma to reduce VAT on petrol and diesel, alleging that Rajasthan continues to witness some of the highest fuel prices in the country despite his repeated demands for tax cuts while in the opposition.

In a statement, Jully reminded Sharma that he often raised the issue of high fuel prices before becoming chief minister and urged him to “at least take pity on the people of your home district Bharatpur” by reducing VAT across the state amid rising inflation.

Citing calculations by the Rajasthan Petrol Dealers Association, Jully said the state’s VAT structure — around 29.04% on petrol and 17.30% on diesel — automatically boosts govt revenue whenever fuel prices increase.

According to the association, VAT earnings per litre increased from Rs23.22 to Rs24.17 on petrol and from Rs13.04 to Rs13.62 on diesel between May 1 and May 19, 2026, following repeated hikes in fuel prices. The additional VAT earning on the rise in price from May 21 and May 25 is yet to be fully calculated as the dealers are awaiting clarification from the govt.

Fuel prices in Jaipur have risen four times over the past two weeks after four successive hikes in May. Petrol and diesel prices first increased by around Rs3 per litre on May 15, followed by another ₹0.90 hike on May 19. Prices were again raised by around Rs0.87-Rs0.94 per litre on May 23 and by another Rs2.61-Rs2.80 per litre on May 25.

Overall, petrol prices in Jaipur increased by nearly Rs7.50-Rs8.20 per litre between May 1 and May 26, while diesel prices rose by around Rs7.57-Rs8 per litre during the same period.

Petrol prices climbed from around Rs104.72-Rs105.71 per litre on May 1 to Rs112.66-Rs113.35 by May 26, while diesel prices rose from Rs90.21-Rs90.49 to Rs97.78-Rs98.39 per litre.

Jully argued that the additional VAT revenue gave the state govt enough fiscal space to reduce taxes without affecting state finances. “When fuel prices rise, the burden ultimately falls on the common people. The govt should now pass on relief instead of collecting additional revenue,” he said.

He said reducing VAT and road cess would directly benefit farmers, transporters and ordinary consumers already struggling with inflation and rising transportation costs.

The Congress leader pointed out that higher diesel prices directly impact agricultural operations and transportation, eventually increasing prices of essential commodities across sectors.

Sandeep Bhageria, treasurer of the Rajasthan Petrol Dealers Association, also urged the state govt to pass on the benefit of the additional VAT revenue earned from rising fuel prices to citizens by reducing taxes on petrol and diesel.