Petrol price in the city increased by about ₹1.7 per litre and diesel by about ₹7.1 per litre on Tuesday as the Delhi government increased the Value Added Tax (VAT) charged on both the fuels.
The VAT on petrol has been increased from 27% to 30%, the charge on diesel has been hiked from 16.75% to 30%, said a Delhi government official.
Petrol will now cost ₹71.26 a litre as against ₹69.59 previously. Diesel will cost ₹69.39 per litre, up from ₹62.29.
The Finance Department of the Delhi government had on late Monday issued a notification amending the fourth schedule of the Delhi Value Added Tax, 2004, (Delhi Act 3 of 2005), increasing the VAT on petrol to 30 paise per rupee and also Diesel (High speed diesel, super light diesel oil, light diesel oil) to 30 paise per rupee.
‘Tough solutions’
The new charges came into effect from Tuesday. “Life isn’t all about rainbows and sunshine. Tough times need Tough solutions — my learning as Finance Minister [sic],” Delhi Finance Minister Manish Sisodia tweeted after the hike came into effect.
The increase was done with the approval of Lieutenant Governor Anil Baijal.
The revenue collection of the Delhi government was down by almost 90% in April due to the lockdown and the move is aimed to shore up the State economy, said officials.
