Zee Media Bureau
New Delhi: The Delhi government on Wednesday increased the VAT on petrol and diesel prices. The petrol price has been increase by Rs 2.78 and diesel price by Rs 1.83 per litre.
The raise, effective from midnight, is the first hike in Value Added Tax effected by Aam Aadmi Party government since capturing power in Delhi.
"The VAT rate on petrol has been increased from 20% to 25% and on diesel from 12.5% to 16.6%, thereby resulting increase in the price of petrol by Rs 2.78 per litre (approx.) and in the price of diesel Rs 1.83 per litre," government said in a statement.
The retail price of petrol in Delhi will be now be Rs 69.43 per litre and diesel will sell at Rs 52.07 per litre.
According to government, on the basis of the decision taken in the meeting of Finance Ministers of northern states on May 21, 2015 for bringing uniformity in the tax rates, it has decided to increase VAT rate on diesel and petrol.
Earlier in June, state-run Indian Oil had cut the fuel price by Rs.1.35 per litre, while increasing that of petrol by 64 paise a litre, in line with the trend in global oil rates.
State-owned fuel retailers IOC, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rate in the previous fortnight.
With Agency Inputs