Petrol price in Delhi has been hiked by Rs 1.67 a litre today, while diesel prices saw Rs 7.10 per litre jump after the Delhi government raised local sales tax or value-added tax (VAT) on the two fuels. Petrol in Delhi now costs Rs 71.26 a litre as against Rs 69.59 previously, while diesel price has been hiked to Rs 69.39 per litre from Rs 62.29 earlier.
In total, the Delhi government raised VAT on petrol to 30 per cent from 27 per cent, previously, while VAT on diesel was almost doubled to 30 per cent from 16.75 per cent currently. Last week, the Haryana government had also increased VAT on petrol and diesel by 1 per litre and Rs 1.1 per litre, respectively.
Delhi Government increases VAT on petrol from 27% to 30%, and on diesel from 16.75 % to 30%. Price of petrol increased by Rs 1.67 & diesel by Rs 7.10 pic.twitter.com/AzcZgYAvZ1— ANI (@ANI) May 5, 2020
Dealing with the problem of dipping revenues, the Delhi government's excise department has also allowed the sale of liquor.
To cash in on tipplers swarming liquor shops, the government has also imposed a 'Special Corona Fee' of 70 per cent on the sale of liquor, which will come into effect from April 5, Tuesday.
On Sunday, Delhi CM Arvind Kejriwal had said the government's earnings and economy had been badly affected due to the coronavirus-induced lockdown. Citing revenue figures, he said the Delhi government had earned Rs 3,500 crore in April 2019, but only Rs 300 crore in April this year.
Delhi has been under lockdown since March 23. Like Delhi, Haryana is also mulling a "COVID cess" on liquor to support the areas or institutions adversely hit by the pandemic, Deputy Chief Minister Dushyant Chautala has said.