VAT hike makes diesel costlier than petrol in Delhi: IOC

Hindustan Times (Jalandhar) - - HT BUSINESS - feed­

NEWDELHI:Diesel price for the first time in liv­ing mem­ory cross­ing the rate of petrol in the na­tional cap­i­tal on Wed­nes­day was a re­sult of a steep hike in VAT by the state gov­ern­ment, In­dian Oil Corp (IOC) Chair­man San­jiv Singh said, point­ing to lower rates across other cities.

Ac­cord­ing to a price no­ti­fi­ca­tion of state oil mar­ket­ing com­pa­nies, petrol price was un­changed af­ter 17 con­sec­u­tive in­creases, while diesel rates were hiked by 48 paise per litre, the 18th daily in­crease in a row across the coun­try. Diesel now costs ₹79.88 per litre in Delhi as com­pared to petrol price of ₹79.76. Rates dif­fer from state to state depend­ing on the in­ci­dence of VAT.

“The Delhi gov­ern­ment had in­creased VAT on petrol from 27 per cent to 30 per cent and that on diesel from 16.75 per cent to 30 per cent on May 5,” Singh told re­porters here. This mas­sive hike in VAT re­sulted in rates go­ing up by ₹.67 per litre for petrol and by a record ₹7.10 for diesel on one day.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.