Delhi govt increases VAT on diesel, petrol

Following in the footsteps of the Union government, the Delhi government has increased value added tax (VAT) on petrol and diesel for the second time this financial year. With this, petrol in Delhi would cost 96 paise a litre more and diesel 53 paise more.

The Delhi government on Monday night raised VAT on petrol to 27 per cent from 25 per cent and on diesel to 18 per cent from 16.6 per cent. A pollution cess of Rs 0.25 per litre will also be levied on diesel.

Petrol now costs Rs 59.99 a litre in Delhi and diesel Rs 44.71. Last week, the Union government raised excise duty on petrol by 75 paise a litre and the duty on diesel by Rs 1.83. Taking advantage of falling global prices, the National Democratic Alliance government has hiked excise duty on the two fuels four times this financial year. In 2014-15 too, the excise duty was raised four times.

Petroleum dealers protested the increase. They said the sale of petrol and diesel dropped by 25-30 per cent in volume during 15-days of odd-even road rationing scheme of the Delhi government. Any further increase will cause huge losses, as sales will shift to neighbouring states, said Ajay Bansal, president, All India Petroleum Dealers Association.