Fuel Price Shock: J&K Consumers Feel the Sting of New Tax Rates
Srinagar, April 2, 2025 – Residents of Jammu and Kashmir are grappling with a sharp increase in fuel prices following the implementation of revised tax rates on petroleum products. Effective April 1, petrol prices have risen by ₹1.24 per litre, while diesel has seen a steeper hike of ₹2.17 per litre, bringing the retail prices to ₹100.94 for petrol and ₹87.20 for diesel across the Union Territory.
Revised Tax Framework
The price hike stems from a notification issued by the J&K Finance Department (S.O. 76), which restructured the tax framework for various fuels:
- Petrol: Taxed at 24% minus ₹3.50 per litre, with an additional cess of ₹2.00 per litre.
- Diesel: Taxed at 16% minus ₹4.50 per litre, with an added cess of ₹1.00 per litre.
- Aviation Turbine Fuel (ATF): Taxed at 5%.
- Natural Gas: Taxed at 21%.
The notification, signed by Principal Secretary Santosh D. Vaidya, supersedes all previous tax notifications on petroleum products.
Public Reaction
The price hike has drawn widespread frustration from local residents and businesses:
- Manzoor Ahmad, a taxi operator from Jammu, expressed concerns about the impact on his livelihood. “I’ll have to increase my fares, which means fewer customers. With diesel crossing ₹87, my daily earnings will drop by at least 15%,” he said.
- Shazia Mir, a government employee commuting 30 kilometers daily, called the timing unfortunate. “The government should have considered the economic condition of ordinary citizens before implementing this increase,” she remarked.
Economic Implications
Transport associations have warned that higher fuel prices will lead to increased costs for essential commodities and services. Economic analysts predict that the ripple effects could raise the region’s inflation rate, particularly affecting transportation-dependent sectors like tourism, agriculture, and retail distribution.
