Petrol and diesel prices hiked as govt raises VAT

The Delhi government has hiked sales tax on petrol and diesel increasing prices of the two fuels by 96 paise and 53 paise per litre, respectively.

The Delhi government has hiked sales tax on petrol and diesel increasing prices of the two fuels by 96 paise and 53 paise per litre, respectively.

The Delhi government raised VAT on petrol to 27% from 25%, while VAT on diesel was increased from 16.6% to 18%. (Ravi Kumar/HT Photo)

Effective Monday midnight, the Delhi government raised VAT on petrol to 27% from 25%, while VAT on diesel was increased from 16.6% to 18%. A pollution cess of Rs 0.25 per litre is also levied on diesel.

While petrol in the city would cost Rs 59.99 per litre as against Rs 59.03 per litre earlier, one litre of diesel now costs Rs 44.71 as opposed to Rs 44.18 earlier.

“The government has rationalised the VAT rates for petrol and diesel on the basis of the decision taken in the meeting of finance ministers of northern states for bringing uniformity in the tax rates,” a government official said.

While the ruling party defended the decision of the government, the opposition BJP demanded a rollback of the hike.

“Finance minister Manish Sisodia claimed in his budget speech that Delhi is a revenue surplus state. Therefore, this imposition of additional tax on the residents of Delhi is uncalled for,” Delhi BJP chief Satish Upadhyay said.