National People’s Party raises concern on high fuel prices

DIMAPUR — The National People’s Party (NPP) Nagaland has raised concern over the prevailing fuel prices in the state, which it said continue to remain higher compared to neighbouring northeastern states.

According to a press release issued by the Media Cell, NPP Nagaland on Thursday, petrol prices in Nagaland stand at around INR 97.75–97.98 per litre, while the rates in Meghalaya are about INR 96.35 and in Arunachal Pradesh INR 92.50–92.66.

It cited that diesel in Nagaland costs approximately INR 88.00 per litre, while in Meghalaya it is INR 87.74 and in Arunachal Pradesh INR 80.49–82.20. This means citizens of Nagaland are paying over INR 5 extra per litre for petrol and INR 6–8 more for diesel compared to Arunachal Pradesh.

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The party highlighted the impact of the high rates, stating that transporters, commuters, and small traders are hit by increased fares; farmers face higher input costs that push up food prices; and families and youth suffer household burdens and restrictions in mobility.

Explaining the cause of the price difference, NPP Nagaland pointed to the Value Added Tax (VAT)/Sales Tax structure.

It said that Nagaland levies 21.75% VAT or INR 16.94 per litre (whichever is higher) on petrol and 17.20% VAT or INR 12.83 per litre (whichever is higher) on diesel. In comparison, Meghalaya charges 13.50% VAT or INR 13.50 per litre (whichever is higher) on petrol and 5% VAT or INR 9.50 per litre (whichever is higher) on diesel, while Arunachal Pradesh imposes 14.50% VAT on petrol and 7% VAT on diesel.

The “whichever is higher” clause in Nagaland’s taxation, coupled with higher percentages, has led to the state’s fuel prices being costlier.

The press release stated that while a portion of fuel taxes may be directed towards infrastructure and social development such as roads, schools, and community projects, it is important that these funds are used transparently and their utilisation communicated clearly to citizens. Without visible benefits, it added, high fuel costs become an undue burden on the common people.

It suggested that a specific cess could be levied on VAT for the upkeep of urban infrastructure, given that urban citizens consume more fuel. This, it said, would ensure better maintenance of facilities in towns and cities while keeping the broader burden on rural citizens proportionate.

NPP Nagaland, a constituent of the NDA, stated that while it stands with the alliance, on issue-based matters its priority is the welfare of the people. Expressing deep concern about the impact of the price differences on everyday life, the party emphasised that fuel directly affects every sector of society.

The party appealed to the concerned authorities to review the current taxation and pricing structure to bring parity with neighbouring states and provide relief to the people.