Coronavirus Impact: Petrol and Diesel Prices increased in Delhi

  • Hot
  • Published On: 5 May 2020
  • Views
  • Likes
  • 2 min read
  • Download

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

Petrol and Diesel Prices
  • Petrol and Diesel Prices

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

Giving emotions to the machines, Abhinav Smith loves to write on automobiles which is his undying passion. Currently working as an auto correspondent at Droom Discovery, he is an ardent fan of machines and Manchester United in equal measure. He pursued Engineering as a degree but took up writing as a career like many of his peers. Abhinav has 5 years plus of experience in the writing field. more

Search Your Dream Vehicle

Select Category

  • Bikes
  • Scooters

Recent News

Driving License, Vehicle Document Validity Extends Till Sept
Published On : 17 June 2021 | 1 min read

The Indian Govt has extended the validity of driving license & vehicle documents until September 30, 2021.

Click here to Read More
BMW 5-Series Facelift India Launch on June 24, 2021
Published On : 17 June 2021 | 1 min read

The BMW 5-Series facelift had its world premiere last year in May

Click here to Read More
2021 Skoda Kushaq Variant Details Leaked Ahead of Launch
Published On : 17 June 2021 | 1 min read

The all-new SKoda Kushaq will be launched on June 28, 2021, in the country

Click here to Read More
2021 Mercedes Benz S-Class Launched at Rs 2.17 Crores
Published On : 17 June 2021 | 1 min read

It has been presented in two variants namely 400d 4MATIC and 450 4MATIC

Click here to Read More
Toyota India Introduces
Published On : 16 June 2021 | 1 min read

It aims at assisting customers with the availability and accessibility of genuine parts

Click here to Read More
2021 Range Rover Velar Deliveries Start in India
Published On : 16 June 2021 | 1 min read

New Range Rover Velar was launched at a starting price of Rs 79.87 Lakhs (Ex. Showroom, India)

Click here to Read More