Prices of petrol, diesel hiked in Delhi; Govt blames it on oil cos

New Delhi, Jun 6 (UNI) Prices of petrol and diesel were hiked in the city today, following the new tax structure for the fuels.

The Delhi government clarified that the hike was due to the ''corrective measures'' taken by oil companies in computing VAT on base price and not due to hike in tax.

Stating ''categorically'' that it had not taken any decision to increase VAT on petrol and diesel the state Government in a note issued this evening said, ''the minor hike in sale price of these commodities is due to the corrective measure taken by Oil Companies in Delhi''.

The VAT on petrol and diesel continues to be charged at 20 per cent and 12.5 per cent respectively, it added.

The Delhi government had decided to forego VAT on the increase effected in oil prices by the Central government last year on June 6, in public interest to provide relief to the people, by bringing the amendment in the Value Added Tax Act, 2004.

This being a 'one-time relief' has now been nullified by two subsequent reductions (November 30, 2006 and February 16, 2007) in prices of petrol and diesel prices since then.

Realising the discrepancy in computation of VAT, which caused a monthly loss of about Rs eleven crore per month to the Delhi Government, the oil companies have taken 'corrective step' to charge VAT on the base price of petrol and diesel resulting in increase of 67 paise in sale price of petrol and 22 paise in sale price of diesel in Delhi.

Now Delhiites would have to shell out Rs 43.52 for a litre of petrol as compared to Rs 42.85 and for an equivalent amount of diesel they would be paying Rs 30.47 instead of the earlier Rs 30.25.

UNI