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Tuesday, June 02, 2020

Diesel price surges Rs 7.10 a litre in Delhi, petrol gets dearer by Rs 1.67 as state govt raises VAT

Petrol, Diesel Price Today: After remaining stable for nearly 50 days, diesel price surged by Rs 7.10 per litre in Delhi while the price of petrol climbed Rs 1.67 a litre on Tuesday.

Written by Sourav Roy Barman | New Delhi | Updated: May 5, 2020 2:10:32 pm
Petrol diesel demand to pick up as govt allows trucks to ply, some industries to resume ops, petrol news india, diesel news india, commodity market news, business news india, indian express business news A petrol pump nozzle. (Image source: Bloomberg)

In a significant move, the prices of petrol and diesel in the national capital have been raised sharply by the oil marketing companies (OMCs) on Tuesday after the Delhi government hiked the Value Added Tax (VAT) on the two key fuels.

While petrol prices have gone up by Rs 1.67 per litre, diesel will cost Rs 7.10 per litre more. Accordingly, petrol will now cost Rs 71.26 a litre and diesel Rs 69.39 per litre. Till Monday, price of petrol in the city was Rs 69.59 per litre while diesel cost Rs 62.29 per litre.

The state government in Delhi has raised the VAT on petrol to 30 per cent from 27 per cent earlier, while for diesel, the VAT has been sharply raised to 30 per cent from 16.75 per cent.

The OMCs had not changed the prices of petrol and diesel since the mid of March, however, a rise in VAT by various state governments in the recent weeks have led to a rise in the retail prices of the key automobile fuels.

In an apparent reference to the decision to introduce the hikes, Finance Minister Manish Sisodia tweeted: “Life isn’t all about rainbows and sunshine. Tough times need Tough solutions – my learning as Finance Minister.” Reeling under a severe financial crunch due to the coronavirus-induced lockdown, which has brought nearly all revenue generating activities to a halt, the Delhi government has also hiked prices of liquor by a staggering 70 per cent.

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