Bhubaneswar, May 17 (IANS): The Odisha government has hiked Value Added Tax (VAT) on petrol from 26 per cent to 32 per cent and on diesel from 26 per cent to 28 per cent with effect from Saturday midnight.

A government statement said petrol and diesel across the state will cost more by Rs 3.11 per litre and Rs 1.03 per litre respectively.

The retail sale price of petrol at Bhubaneswar will be Rs 71.69 per litre and diesel Rs 67.73 per litre.

The collection of additional revenue would be utilised for delivery of services in health, education and other social sectors, the statement said.

The Centre is collecting total tax of Rs 32.98 per litre on petrol and Rs 31.83 per litre on diesel, whereas the Odisha government will collect VAT of Rs 16.60 per litre on petrol and Rs 14.34 per litre on diesel after the price revision.

The government said that the retail sale price of petrol in Bhubaneswar will be less than most other cities in India and the retail sale price of diesel in Bhubaneswar will be less than or at par with other cities in India after the VAT increase.

The last revision of VAT on petrol and diesel was made on January 5, 2016 from 23 per cent to 26 per cent.