UP govt raises fuel prices, imposes 'corona tax' on liquor to boost revenue
Lucknow, May 06: The Uttar Pradesh government on Wednesday decided to increase the price of petrol by Rs 2 per litre and of diesel by Rs 1 per litre to raise additional revenue of Rs 2,070 crore amid the coronavirus pandemic.
The government also decided to impose a 'corona tax' on liquor along with raising prices of petrol and diesel.
The increase liquor prices in the state ranges from Rs 5 to Rs 400 per bottle depending upon its size and category of the drink.The decision to increase the liquor price was taken at a Cabinet meeting chaired by Chief Minister Yogi Adityanath, said state Finance Minister Suresh Khanna, adding the hike is likely to earn a revenue of Rs 2,350 crore in fiscal 2020-21.
Giving details of increase in prices of liquors of various categories, Khann said prices of country-made liquors have been increased by Rs 5 per bottle. "A bottle available for Rs 65 will now be available at Rs 70. Similarly, a bottle of countrymade liquor costing Rs 75 will now be available at Rs 80," Khanna said.
Petrol will cost Rs 73.91 per litre while diesel will be available at Rs 63.86 per litre in the state, finance minister Suresh Khanna told reporters after the Cabinet meeting here.
"The hiked prices will come into effect from midnight today," he said. Chief Minister Yogi Adityanath presided over the meeting of the Cabinet, which was held here on Wednesday.
"Keeping the current situation in mind it was necessary that we gather additional resources. In this context an important decision was taken to hike prices of diesel and petrol since the petroleum products come under the state government and are outside the ambit of GST," Khanna said.
It was decided to hike the price of diesel by Rs 1 per litre and that of petrol by Rs 2 per litre, he added.
At present, the price of petrol is Rs 71.91 per litre and diesel is priced at Rs 62.86 per litre. Petrol consumption is 470 crore litres and that of diesel is over 1,100 crore litres, Khanna said and added that the hike will generate additional revenue of Rs 2,070 crore for the state government.
The move follows the Centre's decision on Tuesday to increase excise duty on petrol by a record Rs 10 per litre and Rs 13 per litre for diesel.
The hike, however, did not push up fuel prices as global oil prices have dropped to a nearly two-decade low.
The cash-strapped government will gain close to Rs 1.6 lakh crore in additional revenues this fiscal from a record increase in excise duty on petrol and diesel.