The price of petrol and diesel in Delhi saw a big hike on Tuesday after the Delhi government raised local sales tax or value-added tax (VAT) on the two fuels.
While the price of diesel went up by 7.1 per liter in Delhi, that of petrol rose by 1.67 per liter after the Delhi government raised VAT in auto fuel.
This follows the Delhi government’s decision to raise VAT on petrol to 30 percent from 27 percent, previously. In the case of diesel, VAT has been almost doubled to 30 percent from 16.75 percent.
The move to hike fuel prices is expected to boost the revenue of the government, which has been hit hard due to the coronavirus lockdown.
Moreover, the Delhi government had on Monday night decided to impose a 70 percent ‘Special Corona Fee’ on liquor.
In a late-night notification, the Finance Department of the Delhi government said, “70 percent of the maximum retail price (will be levied) on all categories of liquor sold through retail licensees for consumption…”