State hikes petrol and diesel prices by ₹2 each

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

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.

HT Image

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.

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.