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Petrol prices go up by Rs 2 per litre, diesel by Re 1 in Uttar Pradesh
Retail prices of fuels fluctuate in tandem with international oil markets. If international prices jump, states which levy ad valorem duties on petrol and diesel gain revenue proportionately, but they lose revenue when international oil rates fall.
The retail price of petrol went up by Rs 2 per litre and diesel price by Re 1 in Uttar Pradesh after the state government raised value-added tax (VAT) on the auto fuels, officials said on Wednesday.
“New prices will be applicable from today midnight,” UP’s finance minister Suresh Khanna was quoted as saying by news agency ANI.
Delhi had raised auto fuel prices on Tuesday.
Retail prices of fuels fluctuate in tandem with international oil markets. If international prices jump, states which levy ad valorem duties on petrol and diesel gain revenue proportionately, but they lose revenue when international oil rates fall.
The Centre levies specific excise duty on the two fuels.
Pump prices of petrol and diesel are different in different states because of variations on sales tax or VAT rates and other local levies.
State-run oil companies have not been revising the rates of the two auto fuel rates, making up for their present and potential inventory losses, since March 16.
