Petrol and diesel prices in Uttar Pradesh went up after the state government hiked Value Added Tax (VAT) on both petrol and diesel. After the price hike, now a litre of petrol will cost ₹73.79 in Noida, while diesel will cost 65.40 per litre. In Lucknow, petrol will now cost ₹73.66 per litre, while diesel will cost₹65.28 per litre. However prices may vary at pumps due to transportation cost.
Prior to the hike, petrol was sold at ₹71.30 per litre and diesel at ₹64.36 per litre in Lucknow, Press Trust of India reported, citing sources.
VAT on petrol in Uttar Pradesh has been increased to 26.80% while that on diesel to 17.48%. Diesel and petrol are outside goods and services tax (GST) and hence the state government has the power to revise VAT on it.
A senior state government official told Press Trust of India that with this decision, the state exchequer will get an additional₹3,000 crore annually and the money will be used in developmental projects.
Apart from global crude prices, petrol and diesel rates in India depend on rupee-dollar exchange rate and local taxes. Almost half of the fuel price is made up of taxes (both state and centre).
Rates vary from state to state depending upon the incidence of local sales tax or VAT. Also prices vary by a few paise at pumps operated by other state-owned fuel retailers, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL).
Last month, Union Finance Minister Nirmala Sitharaman had raised excise duty and road and infrastructure cess on petrol and diesel by ₹2 per litre each to raise ₹24,000-28,000 crore on an annual basis. (With Agency inputs)