Petrol, diesel prices hiked in Delhi: Details here
What's the story
In an unexpected move, the price of petrol and diesel has been increased in Delhi by Rs. 1.67 per liter and Rs. 7.10 a liter, respectively. The decision was announced on Tuesday after the government of the national capital increased the value-added tax (VAT) on both auto fuels. Here's all you need to know about it.
Changes
What are the new prices?
With the latest hike, the price of petrol in Delhi now stands at Rs. 71.26 a liter, up from Rs. 69.59 per liter while diesel has climbed to Rs. 69.39 a liter from Rs. 62.29. The hike has been driven by increase in VAT, with the tax on petrol having been increased from 27% to 30% and that on diesel nearly doubled to 30%.
Revenue
This will boost Delhi's revenue
The increased tax on the prices of petrol and diesel will boost the Delhi government's revenue, which has taken a serious hit due to the lockdown enforced to combat the spread of COVID-19. Notably, the government has also announced the decision to impose a 70% 'Special Corona Fee' on all categories of liquor sold through retail licensees for consumption.
Other states
Other states have also been hiking fuel prices
Along with Delhi, Haryana and Tamil Nadu have also increased VAT on fuel, which does not come under the purview of GST. In Haryana, the price of one-liter petrol has been increased by Rs. 1 while diesel has climbed by Rs. 1.1 a liter. Meanwhile, in Tamil Nadu, petrol's price was hiked by Rs. 3.25/liter while diesel's price went up by Rs. 2.50/liter.
Sales
Petrol, diesel sales have also fallen
The increase in fuel prices comes at a time when the demand for petrol and diesel is weak. Throughout the lockdown period, fuel has been available as an essential product but the decrease in vehicle operations across the country has drastically affected sales. In April, petrol sales were down by 61%, while diesel sales had declined by a significant 56.5%.