Odisha Government on Saturday increased VAT on petrol by 6 pc and diesel by 2 pc to make up for the loss of revenue because of extended lockdown to fight Covid pandemic.
While the price of petrol will go up by Rs 3.11 per litre, diesel will be costlier by Rs 1.03 per litre. In Bhubaneswar petrol will now cost Rs 71.69 and diesel Rs 67.33 from Sunday.
Official sources maintained that collection of additional revenue would be utilised for delivery of services in health, education and other sectors.
The last revision of VAT rate on petrol and diesel was on May 5, 2016 increasing it from 23 pc to 26 pc. The VAT to be collected by the State Government on petrol and diesel from Sunday will be Rs 16.60 and Rs 14.34 per litre.