Petrol price up by ₹1.67/litre, diesel by ₹7.10/litre in Delhi after govt hikes VAT

New Delhi: Petrol and diesel prices in Delhi shot up on Tuesday after the AAP-led government raised VAT on fuel. Petrol price is hiked by Rs 1.67 per litre while diesel price is increased by Rs 7.10 per litre in Delhi. With the revision, the petrol price is Rs 71.26 per litre and diesel price is Rs 69.39 per litre in Delhi, according to IOCL.  VAT (including VAT on dealer commission) for both petrol and diesel are nearly Rs 16 per litre. Diesel is now much cheaper in Delhi’s neighbouring states, Uttar Pradesh and Haryana.

The Delhi government has raised the tax to earn a larger share from the fuel price. The state government has also substantially increased the tax on liquor by 70 per cent on MRP. The state government which was known to give free amenities to its residents is now trying to find a window to collect more and more revenue. The government aims to take advantage of the cheap raw material and use the increased revenue to offset other losses.

Amid falling crude oil prices, the government had earlier raised the cap on additional excise duty on petrol to Rs 18 per litre and diesel to Rs 12 per litre. This was an increase of Rs 8 per litre on the previous level of Rs 10 per litre on petrol and Rs 4 per litre on diesel. The rise in cap was supposed to allow the government to increase the excise duty on fuel. The decision took place in the amendment to the Finance Bill, 2020, which passed in Lok Sabha without the debate.

Meanwhile, after more than a month, the lockdown restrictions have been eased in Delhi and certain business activities have started. Call centres and IT services have been allowed to operate and weddings with 50 guests will also be allowed in the national capital. Even as coronavirus spread has not been controlled in Delhi, CM Arvind Kejriwal said that the time has come to re-open Delhi and they will have to be ready to live with coronavirus.