Petrol Price Hiked By Rs. 1.67, Diesel By Rs. 7.10 Per Litre In Delhi Due To Increase In VAT

Fuel prices have gone up in the national capital after the government increased the value-added tax (VAT). The cost of petrol has gone up by Rs. 1.67 per litre, while diesel has become dearer by Rs. 7.10 per litre. After the revision, petrol prices currently stand at Rs. 71.26 per litre and diesel costs Rs. 69.39 per litre in Delhi. Fuel prices have gone up after a gap of 50 days amidst the ongoing nationwide lockdown issued to contain the spread of the coronavirus, which has now been extended for the second time, till May 17, with a few exceptions.

Also Read: Coronavirus Lockdown: How Petrol And Diesel Prices Have Been Affected

The market price of petrol in Delhi on Tuesday included excise duty of Rs 22.98 per litre and VAT (including the taxes on dealer commission) of Rs 16.44 per litre. In case of diesel, the rate included excise duty of Rs 18.83 and VAT of Rs 16.26 on sale of every litre of the fuel in the national capital. As for other metro cities, petrol and diesel prices in Mumbai remained stagnant at Rs. 76.31 a litre and Rs. 66.21, respectively. The same was the case for Chennai, Hyderabad, Bengaluru, and Kolkata.

Fuel prices in Mumbai, Chennai, Hyderabad, Bengaluru, and Kolkata remained stagnant

Also Read: India's 2019/20 Fuel Demand Growth Worst In Over Two Decades

The coronavirus pandemic, and the resulting lockdown, has also hit fuel demand in India, which saw the worst drop in March. India's petroleum product consumption fell 17.79 per cent to 16.08 million tonnes in March as diesel, petrol and aviation turbine fuel (ATF) demand fell. Diesel demand decreased by 24.23 per cent to 5.65 million tonnes, while Petrol sales dropped 16.37 per cent to 2.15 million tonnes.

Also Read: India's Fuel Consumption Falls 18% As Coronavirus Curbs Energy Demand

However, India's fuel demand is set to recover as authorities eased restrictions from Monday on industrial activity and transport in areas that have contained the spread of coronavirus, Oil Minister Dharmendra Pradhan said on social media. State companies' sale of diesel and petrol is also showing signs of demand revival. Sales of two fuel diesel and petrol in the latter part of April recovered from the first half of the month.