Jaipur, May 7: The Rajasthan government led by Chief Minister Ashok Gehlot on Thursday hiked the value-added tax (VAT) on petrol by 2 percent. The VAT was also increased on diesel by 1 percent. The new auto fuel charges will be effective from midnight. The surge in prices comes at a time when the state government is facing dearth in revenue due to the novel coronavirus outbreak and lockdown.  Excise Duty on Petrol Hiked By Rs 10 Per Litre, Diesel by Rs 13 Per Litre by Modi Government.

Due to COVID-19 lockdown, the sales of petrol and diesel drastically fell in the state. Rajasthan Petroleum Dealers Association (RPDA) President Suneet Bagai said that the VAT rate has been revised in the state for the third time. Diesel And Petrol Prices Hiked by Rs 2 Per Litre in Punjab From Tuesday Midnight.

ANI Tweet:

"Cash strapped government has again increased VAT rate on fuel. It will burden dealers as well as consumers. Petrol and diesel pumps located in the border areas of neighbouring districts are on the verge of a shutdown due to increased VAT. Demand is continuously decreasing," said Bagai.

A day earlier, the Uttar Pradesh government also hiked auto fuel prices. The petrol and diesel prices were hiked by Rs 2 and Re 1 per litre, respectively. "Petrol will now cost Rs 73.91 per litre in UP, while diesel will be available at Rs 63.86 per litre," state Finance Minister Suresh Khanna had announced.

(The above story first appeared on LatestLY on May 07, 2020 10:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).