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State hikes petrol and diesel prices by 2 each

By Faisal Malik, Mumbai
PUBLISHED ON MAY 31, 2020 12:29 AM IST

The Maharashtra government on Saturday decided to charge additional cess of 2 per litre each both on petrol and diesel. The new prices will come into effect from June 1.

The decision was taken to tide over the financial crisis being faced by the state government after a lockdown was imposed from March 23 to contain the coronavirus disease (Covid-19) outbreak.

In Mumbai, as on May 30, petrol prices are in the range of 76.25 to 76.31 per litre, while diesel prices are in the range of 66.15 to 21 per litre.

The state charges cess of 8.12 per litre on petrol and 1 on diesel. This has been increased to 10.12 per litre and 3 per litre respectively, said a senior official from finance department.

The state government is expecting an increased revenue of 3,000 crore in this financial year (300 crore a month) from the hike, said the official.

The financial crisis has led the state government to declare a 67% cut in its spending for developmental works this fiscal, in view of the estimated revenue losses of more than

Rs40,000 crore in March and April 2020, owing to the Covid-19 outbreak.

The state, expecting the cumulative losses to be more than Rs50,000 crore in the current fiscal, has also decided to not take up new development schemes and scrap or defer the schemes that can be put on hold. Among other measures, the government has also decided to stop recruitment for government jobs, meaning that recruitment underway for 35,000 posts is unlikely now.

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