In Assam, the rate of petrol has gone up by Rs 5.85 per litre after the hike. (Representational)
The Assam and Meghalaya governments have increased the taxes on petrol and diesel from today even as global crude oil prices hit record low.
The northeast states have raised the prices in a likely attempt to tide over the financial crisis due to the nationwide lockdown, which has been enforced to contain the spread of the highly contagious novel coronavirus.
"Value Added Tax in Assam for diesel will be 23.66 paise in the rupee or Rs 17.45 per litre, whichever is higher. VAT for petrol and other motor spirits will be 32.66 paise in the rupee or Rs 22.63 per litre, whichever is higher, with effect from April 22," the Assam government said in a notification on Tuesday.
In Assam, the rate of petrol has gone up by Rs 5.85 per litre after the hike, taking the new price at RS.77.46 per litre from the previous Rs.71.61 per litre. With a hike of Rs 5.43, a litre of diesel will cost Rs 70.50, according to a government source.
Assam Finance Minister Himanta Biswa Sarma told NDTV that this step was necessary since the global crude oil price downfall is going to affect the state's revenue. Assam gets a royalty from the Centre for the its crude oil produce. He also said after the COVID-19 pandemic is over, they will rollback the increase taxes on fuel.
"We have a fear of losing our oil royalty. Since it is linked with global crude oil this we are trying to protect our revenues a bit. We are aware people will have to pay more, but we are sure people will understand that these are extraordinary times and once the COVID-19 pandemic is over we will roll back the increased taxes," he said.
The global oil prices, meanwhile, continued to tumble on Wednesday as the market struggled with a massive crude glut amid a collapse in demand caused by the coronavirus outbreak.
Assam's excise department is also considering increasing the tax on liquor to meet the financial exigencies amid the COVID-19 crisis.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)