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New Delhi: Petrol and diesel prices in Delhi have been hiked effective from midnight.
Petrol price is raised by 0.67 paise to Rs 43.52 per litre and diesel price is raised by 23 paise to Rs 30.48 per litre.
"When fuel prices were raised last year, Petroleum Minister Murli Deora had asked state governments not to levy sales tax on the incremental price. Delhi government did not levy sales tax on the increased fuel price but has now decided to levy 20 per cent sales tax on petrol and 12.5 per cent on diesel," an oil company source said.
Delhi government, meanwhile, clarified that it had not increased VAT on petrol and diesel and the hike in fuel rates was due to corrective measure taken by oil companies.
In order to correct the discrepancy in computation of VAT on petrol and diesel, the oil companies have taken a corrective step and decided to charge tax on the base price of the fuels, sources said.
Strongly criticising the hike in fuel rates, Delhi BJP chief Harsh Vardhan said this would result in an acceleration in the increase in prices.
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