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Assam has increased fuel prices steeply to cover "some of the losses" incurred due to the nationwide lockdown imposed to contain the spread of novel coronavirus, Finance and Health minister Himanta Biswa Sarma said on Wednesday.
The price of petrol increased from Rs 71.61 to Rs 77.46 per litre and of diesel from Rs 65.07 to Rs 70.50 per litre. The revised rates will be effective from April 22 midnight. Sarma told a press conference that the increase in fuel prices is a temporary measure and "the pain has to be borne by all.
"Once the coronavirus ends, we will review it again." The state government was losing revenue as fuel purchase by consumers had come down drastically and "we had to increase the prices to cover some of the losses", Sarma said.
"We will be doubly hit as international prices have come down and our royalty from OIL India and ONGC will also come down drastically. Besides, fuel sale in the state has almost been negligible.
"Earlier our monthly dues as royalty was Rs 166 crore but now we will get around Rs 50 crore and so we are trying to protect our revenue by hiking the prices," he said.
Assam government had issued a notification on Tuesday increasing the rates of tax on diesel by "23.66 paise in the rupee or Rs 17.45 per litre whichever is higher" and in the case of petrol and motor spirits by "32.66 paise in the rupee or Rs 22.63 per litre, whichever is higher".
