Petrol and diesel prices in Delhi saw a big hike on Tuesday after the Delhi government raised local sales tax or value-added tax (VAT) on the two fuels.

While the price of diesel went up by 7.1 a litre in Delhi, that of petrol rose by 1.67 per litre after the Delhi government raised VAT in auto fuel.

This follows Delhi government’s decision to raise VAT on petrol to 30 per cent from 27 per cent, previously. In case of diesel, VAT has been almost doubled to 30 per cent from 16.75 per cent.

The move to hike fuel prices is expected to boost the government revenue, which has been hit hard due to the coronavirus lockdown. The Delhi government had on Monday night decided to impose a 70 per cent 'Special Corona Fee' on liquor.

In a late night notification, the Finance Department of the Delhi government said, "70 per cent of the maximum retail price (will be levied) on all categories of liquor sold through retail licensees for consumption..."