After Delhi and Haryana, Uttar Pradesh has also hiked value added tax (VAT) on petrol and diesel. The demand for the fuels have increased after lockdown restrictions were lifted partially in the third phase beginning from Monday.
UP Finance Minister Suresh Khanna said VAT has been increased by ₹2 per litre on petrol and ₹1 per litre on diesel. The new rates will be applicable from today midnight.
Yesterday, the central government also raised excise duties on petrol by ₹10 per litre and ₹13 per litre on diesel. However, since crude oil rates have also fallen down, oil marketing companies will not increase price as a result of the hike in excise duties. But any increase in VAT, imposed by state governments, leads to a subsequent increase in retail selling price of the fuels.
