Pune: The prices of petrol and diesel fuel have been increased in Pune. Fuel prices will pinch pockets of people in the city as the Maharashtra State Government increased the Value Added Tax (VAT).

The coronavirus pandemic has dug big holes in the State’s pockets in terms of generating revenue amid the lockdown. The government issued a notification two days back deciding on the increase of cess on petrol and diesel prices on the vehicular fuel which has resulted in an increase in prices of fuel with effect from Monday and applicable for the entire State.

In international standards, the fuel demand has also increased. The current petrol price was Rs 76.02 will now be Rs 78.09 whereas the diesel rate currently was Rs 64.98 and will be now Rs 66.99.

Speaking to Sakal Times, Ali Daruwala, Spokesperson of the All India Petrol Dealers Association said, “The prices of fuel has increased based on the government decision on increase of VAT which was earlier 24 per cent and now they have increased to 26 per cent that is by 2 per cent. We have demanded to decrease the VAT.

“We have requested the State to withdraw the COVID cess once the pandemic declines and not to expose citizens to unnecessary hardship through additional cess in future.”

Fuel prices continue to rise in the country, despite international crude going low over the last few months. Fuel is India’s largest import, but the coronavirus outbreak has heavily spoiled revenue generation for the country.