Now, the petrol will cost you ₹71.26 a litre as against ₹69.59 per litre earlier while diesel rates have gone up to ₹69.39 a litre as against ₹62.29.
The Arvind Kejriwal-led government has raised the VAT on petrol to 30 per cent from 27 per cent while VAT on diesel has been almost doubled to 30 per cent from 16.75 per cent.
Most states have increased VAT on fuels which do not come under the regime of goods and services tax, because of the huge losses in revenue incurred due to the ongoing Covid-19 crises and the nationwide lockdown that have been extended for the second time.
States such as Haryana had recently raised the tax by ₹1 per litre on petrol and ₹1.1 per litre on diesel. In Chennai, petrol and diesel price rose ₹3.25 per litre and ₹2.50 per litre, respectively after the Tamil Nadu government raised VAT.
Even as petrol pumps were brought under the essential services category for the lockdown period but the restricted movement and less usage of cars have impacted the fuel sales badly.
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Although petrol prices have dwindled by 61 per cent and diesel 56.5 per cent in April, it is expected that once the lockdown is eased across the county the demand will pick up.
Oil marketing companies didn’t change the base selling price of petrol and diesel but the rise in retail prices have come due to the increase in VAT by state governments like West Bengal, Karnataka and Tamil Nadu.
Globally, crude prices have plunged more than 60 per cent but the state-run fuel retailers have not been able to cut prices in the Indian market due to inventory losses and a falling demand.
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