In a bid to make up for the shortfall in overall revenues during the ongoing lockdown, the Delhi government on Tuesday announced a hike in taxes on fuel prices.
While petrol price in the Indian capital has been hiked by 1.67 Indian Rupees per litre, diesel price has been increased by 7.1 Indian Rupees per litre.
This is the result of the Delhi government's decision to raise Value Added Tax (VAT) on petrol to 30 percent from 27 percent, and almost double to 30 percent from 16.75 percent on diesel.
Henceforth, petrol would be available at a price of around 71.26 Indian Rupees (95 U.S. cents) per litre, while diesel would cost around 69.39 Indian Rupees (92 U.S. cents) per litre, said media reports.
Tuesday's was the second successive decision of the Delhi government to ramp up its revenues, in order to make up for the shortfall during the ongoing lockdown imposed to prevent the novel Coronavirus (COVID-19) pandemic outbreak.
Only last night, the Delhi government decided to impose a 70 percent "Special Corona Fee" on liquor prices.
India has been under lockdown since March 25. It has been extended twice, first on April 14 for 19 days and then on May 1 for two more weeks until May 17.
During the lockdown, almost all manufacturing and retail sales activities were shut, rendering huge revenue losses to both the central and states governments.
Editor:Cherie
