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Fuel price hike | Delhi government raises VAT; petrol up by Rs 1.6/litre, diesel by Rs 7.1

Value-added tax (VAT) on petrol has been raised from 27 percent to 30 percent, and on diesel from 16.75 percent to 30 percent

May 05, 2020 / 07:01 PM IST

Price of petrol in the national capital has increased by Rs 1.67 to Rs 71.26 per litre and diesel by Rs 7.10 to Rs 69.29 per litre, compared to May 4. 

This after the Delhi government increased value-added tax (VAT) on the auto fuels to 30 percent each. Up from 27 percent to 30 percent for petrol, and up from 16.75 percent to 30 percent for diesel. 

For diesel fuel, the increase is almost double the previous VAT.

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The move comes close on the heels of the state government imposing a 70 percent 'Special Corona Fee' on sale of liquor in the city. The fee has been imposed on the maximum retail price (MRP) of liquor bottles. The new rate will be applicable from May 5.


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Both the developments are expected to boost state revenue, which has taken massive hits due to the extended COVID-19 lockdown.

The lockdown, which began from March 24 midnight, and now extended till May 17, eroded India's fuel consumption by almost 70 per cent in April, PTI reported.

Industry data however, shows improvement in demand in the last 10 days of April as some restrictions were eased. The demand is expected to further pick up as more areas were opened up on May 4.

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Moneycontrol News
first published: May 5, 2020 10:15 am
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