Fuel prices rise again as petrol becomes costlier by nearly ₹8 in 10 days

These were the petrol prices in Jaipur on May 15th

Petrol - ₹104.72
Diesel - ₹90.21

The hike in the cost of fuels is affecting the pocket of common citizens adversely. The hike in fuel prices will certainly have an effect on vegetable, fruit, milk, and other everyday items’ prices due to an increase in transportation costs. According to experts, the combination of fuel price hike, summer, and increased transportation costs may increase the inflation rate.

Petrol prices increased by about ₹7.94 and diesel prices hiked by around ₹7.57 in just 10 days. Prices of various items such as food, clothing, footwear, and other essential items are getting affected due to the increase in prices.

Amidst rising petrol and diesel prices, the Rajasthan Petroleum Dealers Association (RPDA) has sent a memorandum to the Chief Minister, demanding that the state government reduce VAT and road cess on petrol and diesel. The association stated that after the central government provided relief to the public by reducing excise duty, the state government should also provide relief by reducing VAT. The memorandum stated that the rising prices of petrol and diesel are increasing transportation costs, which is impacting everyday items, including food items.

The dealers association claimed that the Rajasthan government is automatically receiving higher revenues as prices rise due to the percentage-based VAT system on petrol and diesel. According to the memorandum, the total VAT and road cess revenue from petrol and diesel was ₹39.51 per liter on April 1, 2026, which increased to ₹41.04 per liter by May 19, 2026.

The association demanded that the government return some of the increased revenue in the form of VAT reductions to provide relief to the public and farmers. The memorandum also stated that if petrol and diesel prices rise further in the future, the state government should provide relief to the public by reducing the additional revenue. RPDA also suggested that transportation costs could be controlled by reducing road cess. The association said this would also help curb inflation.