UP government increases the price of gasoline by Rs 2/L, diesel by Rs 1/L

LUCKNOW: Raised state liquor and fuel prices on Wednesday to fill a massive income deficit. Starting at midnight, gasoline prices will be higher at Rs 2 per liter, while diesel will be more expensive at Re 1 per liter.

The decision, approved by the cabinet, is expected to generate an additional income of Rs 4,420 crore this year.

The finance minister said that while tax collection in April is usually low, the state government had a target of Rs 12,141 crore for April 2020. Against this, he said, the state collected only Rs 1,178 crore. The state's financial situation is extremely weak at the moment and we have to take steps to increase our income. As part of that exercise, we have increased the prices of fuels and liquors, said the minister.

The price of gasoline in UP, which is Rs 71.92, will increase by Rs 2 and will be sold at Rs 73.93 per liter since midnight on Wednesday. Similarly, diesel, which is Rs 62.86 per liter, will become Rs 63.86 per liter.

The state sells Rs 470 million of diesel and 1,130 million tons of gasoline per year. According to those data, the government should be able to earn an additional income of Rs 2.07 billion rupees, Khanna said.

The minister added that the current excise tax policy was also being modified to reflect the price increase.

Country liquor, which is sold at Rs 65 and Rs 70 respectively, will now be Rs 5 more expensive.

At Indian Made Foreign Liquor, prices have risen from Rs 10 to Rs 50 for medium and low-priced brands. For up to 180 ml the price has increased by Rs 10, for 180-500 ml the price has increased by Rs 20 and for 500 ml and more the price has increased by Rs 30.

For regular and premium brands, the increase has been from Rs 20 for up to 180 ml, Rs 30 for 180 ml-500 ml and Rs 50 for 500 ml and more. Imported liquor will see an increase of Rs 100 up to 180 ml, Rs 200 for 180-500 ml and Rs 500 for 500 ml and more.

This, Khanna said, will generate additional income of Rs 2,350 this year.