New Delhi: Today i.e January 8 (Sunday), the Himachal Pradesh government announced that the value-added tax (VAT) on diesel would be raised by Rs 7.40 per litre. After the state government raised the VAT on fuel from 6.40 percent to 9.96 percent per litre, it is expected to become more expensive in the state. Diesel's current VAT rate of Rs 4.40 per litre would increase to Rs 7.40 with this hike. As a result, diesel would cost Rs 86 instead of Rs 83.


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The price of diesel will likely increase by about Rs 3 per litre as a result of the VAT increase. On the other hand,  the VAT on gasoline has also been decreased by about 0.55 paise.


The choice was made on the same day that the state government extended its cabinet. On Sunday morning, seven MLAs, including Vikramaditya Singh, the son of former chief minister Virbhadhra Singh, took an oath to serve in the new cabinet in Himachal Pradesh.


(With ANI inputs)