Hike in petro prices to have cascading effect: Gurnani

Mumbai, Jun 5 (UNI) Federation of Association of Maharashtra (FAM) president Mohan Gurnani today said the hike in petrol, diesel and LPG prices will have a cascade effect on almost all commodities.

Although the Prime Minister had tried to tell the nation by addressing it as bare minimum, with a view to cover the burden being borne by the Union Government and oil companies, due to the rising import costs, the petro-hike will have direct effect on food items, he said in a release here.

It would also lead to increase in transportation cost by 20 per cent, the hotel industry also needs relief from value added tax (VAT), which is 12.5 per cent. They will pass on the burden to the customers, leading to 25 per cent hike in hotel eateries, he said.

He felt the only solution is to reduce VAT and sales tax on petroleum products at the state level.

''As a relief to this steep fuel price hike, we request that the state government should reduce the sales tax on petroleum products, and bring down the burden of the common man,'' he added.

UNI JM SSS RL KN1717