Gujarat: Petrol, diesel to be costlier by Rs 2/litre

GANDHINAGAR: Citing huge losses in revenues because of the prolonged lockdown, the Gujarat government on Monday announced that petrol and diesel will be costlier by Rs 2 per litre from Tuesday.
Deputy chief minister and finance minister Nitin Patel said that the government has suffered major losses from all revenue sources because of the lockdown. Stating that the prices of petrol and diesel in Gujarat are among the lowest in the country, Patel said that the state government decided to increase the prices. “The government aims to earn an additional revenue of between Rs 1,500 crore and Rs 1,800 crore with the price hike,” Patel said.
Patel said that even after the price hike, the cost of petrol in Gujarat will be the lowest in the country. “The price of petrol in Gujarat is lower by about Rs 10-12 per litre compared to other states,” he said. “Gujarat ranks 16th among all states as far as diesel price is concerned.” Speculation buzzed for the past few days that the government will increase prices of petrol and diesel to compensate for its revenue losses. A number of state governments have also increased prices of petrol and diesel to offset lockdown losses. The government expected an annual revenue of about Rs 23,300 crore in the form of VAT on petrol and diesel this year. Even after the increase in prices of petrol and diesel, the revenue from VAT on petrol and diesel is likely to fall by between Rs 8,000 crore and 8,500 crore in the ongoing financial year, the minister said.