Coronavirus Impact: Petrol and Diesel Prices increased in Delhi

  • Hot
  • Published On: 5 May 2020
  • 161 Views
  • 0 Comments
  • Likes
  • 2 min read

AAP led Delhi government increases petrol prices by Rs 1.67 and diesel by Rs 7.10

In a major development, AAP led Delhi Government increased the fuel prices in the national capital. The petrol price was hiked by Rs 1.67 a litre on Tuesday and diesel by a steep Rs 7.10 per litre after the Delhi Government increased local sales tax or value-added tax (VAT) on the two fuels. In comparison to the percentage increase, the Delhi Government raised VAT on petrol to 30 percent from 27 percent while in the case of diesel, VAT has gone upto 30 percent from 16.75 percent.


The hike was expected after its neighbour Haryana had also increased the VAT on diesel and petrol prices a few days back. For diesel, the current rate is almost double in comparison to earlier prices. If we look at the revenues, the Delhi Government earned Rs 3,500 crore in April 2019, but last month is was only able gather Rs 300 crore. This might have forced the Arvind Kejriwal helmed Delhi Government to increase the rates on fuel. 


Diesel is now more expensive in Delhi compared to its neighbouring states, Uttar Pradesh and Haryana. Delhi Government had put restrictions on its people's movement due to the COVID-19 outbreak. With the movement of normal vehicular traffic ceased and only essential services allowed, Delhi economic resources took a severe hit. With money going towards various social initiatives designed to help the people affected by Coronavirus, the Delhi Government had to take drastic measures. Increasing the tax on fuel would further add money to the government coffers as the restrictions ease. Petrol and diesel price hike is one of the surest ways to shore up the declining revenues. 

Read Also : Lockdown 3.0 - All You Need to Know

The step to increase fuel prices by the Government comes close on heels of other Indian state increasing the prices on fuels and other commodities. In April, at least 3 states in India increased fuel prices by as much as Rs 6 per litre to generate funds to tide over the Coronavirus Pandemic. The Nagaland Government announced cess of Rs 6 per litre on petrol and Rs 5 per litre on diesel. Assam and Meghalaya also announced hikes on petrol and diesel prices. 


We can expect other Indian states to follow suit once lockdown ends.

Author: Abhinav Smith

Recent News

Royal Enfield Classic 650 Rendered

SRK Designs renders a Classic 650, Hopes that a Classic 650 is there as Royal Enfield is planning to launch a Himalayan 650 soon

Read More
BS6 Kawasaki Ninja 1000SX Launched at Rs 10.79 lakhs in India

New BS6 Kawasaki Ninja 1000SX comes with single side exhaust and 4 riding modes

Read More

News You May Like

BMW R18 Cruiser Motorcycle Unveiled

1800cc BMW R18 Cruiser Motorcycle unveiled with options for customization.

Read More
BMW Reveals 600hp M5 with AWD

The sixth-generation M5 is powered by a twin-turbo 4.4-litre V8.

Read More
Download App