Chennai sources have stated that Petrol and diesel prices in Tamil Nadu have gone up by Rs. 3.78 and Rs. 1.70, respectively, following a revision of the Value Added Tax (VAT) by the State government.
Tamil Nadu Petroleum Dealers Association has protested the move, saying the hike would affect all sections of society and demanded an immediate rollback.
Meanwhile the Association president K.P. Murali had said the
VAT on petrol was increased from 27% to 34%, while that on diesel was hiked
from 21.4% to 25%.
“This is a steep increase. While the petrol price will affect the motorists, the hike in diesel rate will have a cycle effect on many products, including vegetables as diesel vehicles are predominantly used in the transportation of commodities (sic)". Following the hike, the petrol price has touched the Rs. 75 mark in Chennai.