Uttar Pradesh govt raises tax on petrol, diesel amid coronavirus lockdown

The Uttar Pradesh government has raised taxes on fuel amid the nationwide lockdown to stave off the spread of coronavirus, reported ANI.

UP finance minister Suresh Kumar Khanna on Wednesday announced that value added tax (VAT) will be increased by Rs 2 on petrol and Rs 1 on diesel respectively, according to ANI.

The new prices will be applicable from Wednesday midnight.

The hike follows a similar announcement by the union government on Tuesday when it hiked the additional excise duty in the form of road cess on petrol and diesel by Rs 8 per litre each. It also raised the special additional duty on excise by Rs 2 on petrol and Rs 5 on diesel respectively.

The combined hikes led to a net increase of Rs 10 and Rs 13 on petrol and diesel, respectively.

However, the hike is being absorbed against the fall in crude prices and so that there is no change in the retail prices for consumers.

In the early morning trade on Wednesday shares of oil marketing companies such as Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Coproration (HPCL) plunged between 3 and 7 percent following the union government's announcement.