Gujarat Government has decided to hike petrol and diesel prices by Rs 1.90 and Rs 1.82 respectively per litre on Tuesday.
The hike in the prices of both the important petroleum products would be applicable fromWednesday onwards. Justifying the hike in tax on petrol and diesel, a statement by the Sales Tax Department said the State Government had seen adverse impact in its revenue due to continuous price cut in both the petroleum products and as result the revenue of the Government decreased substantially and hence the development works in the State could be affected adversely. A majority of other States across the country have increased tax on petrol and diesel during last one and half year, said the statement.
“To avoid this, tax on petrol has been increased by 1 per cent and cess by 2 per cent. Thus, it will be 24 + 4 per cent instead of existing 23 + 2 per cent. With this the effective price of petrol per litre will be Rs 62.12 which is lower than Rajasthan, Madhya Pradesh, Kerala, Telangana, Andhra Pradesh, Punjab, Uttar Pradesh, Bihar, Maharshtra and West Bengal,” the official statement said adding that similarly tax on diesel would be up by 3 per cent and cess by 1 per cent and so its effective price would be Rs 50.13.