Lucknow: Uttar Pradesh government increased VAT on fuel in the state. The petrol and dieselprices in Uttar Pradesh went up by Rs 2.5 and Re 1 respectively from Monday midnight after hike in VAT by the government. The Value Added Tax (VAT) on petrol has been increased to 26.80 per cent or Rs 16.74 per litre (whichever is higher) and on diesel 17.48 per cent or Rs 9.41 per litre (whichever is higher), according to an official order. The order came into effect from Monday midnight.

In Lucknow, the petrol will now cost Rs 73.65 per litre, while diesel will cost Rs 65.34 per litre. Earlier, the petrol was sold at Rs 71.30 per litre and diesel at Rs 64.36 per litre, official sources said.

A senior government official said with this decision, the state exchequer will get additional Rs 3,000 crore annually and the money will be used in developmental projects.