The prices of petrol and diesel in the State are set to go up by ₹3.25 and ₹2.50 per litre. The hike is a sequel to changes made by the State government in the tax structure for petroleum products that came into effect from the midnight of Sunday, according to a notification issued by the State government.
A notification issued by the government says the revision will come into force on the midnight of May 3/May 4. Accordingly, the prices of petrol will go up by Rs 3.25 per litre and diesel by Rs 2.50 per litre.
The changes would generate additional income of Rs 250 crore to the state monthly. Petrol and diesel prices do not come under the ambit of GST as VAT on them is one of the major revenue generators for the state governments.
Last month, the Nagaland government also had imposed Covid-19 cess on diesel and petrol to meet the financial exigencies arising out of the novel coronavirus pandemic. Nagaland government imposed a Rs 5 per litre cess on diesel and Rs 6 per litre on petrol and other motor spirits.
The structure of State-level Value Added Tax (VAT) for the petroleum products has been changed from a pure ad valorem tax rate to a combination of quantum and the absolute figure of the tax rates.
In respect of petrol, the structure has been changed from 34% to a sum of 15% and ₹13.02 per litre. Likewise, in the case of diesel, it is the aggregate of 11% and ₹9.62 per litre from 25%.
Opposition leaders including DMK president M K Stalin and AMMK founder TTV Dhinakaran have slammed the government for hike in fuel price.