Petroleum dealers of Jharkhand on Wednesday expressed concern over the state government’s plan to increase value-added tax (VAT) on petrol and diesel.

In a news meet at Green View petrol pump here, Ashok Kumar Singh, president of Jharkhand Petroleum Dealers’ Association, said: “We came know through media reports that the state government is further planning to increase VAT on petrol by Rs 2 per litre and diesel by Rs 4 per litre. We request the government not to carry out the hike as it will lead to a drop in sales and, therefore, not serve the avowed objective of increasing revenues.”

Following an increase in VAT, a litre of petrol will cost Rs 73.22 and diesel Rs 69.05.

He said another huge increase in prices within a short period of time would be major cause for concern.

Singh said during the lockdown, petrol sales had dropped 60 per cent while diesel sales had come down by more than 80 per cent. “Now, with the gradual increase in vehicular traffic, sales have started picking up. But if the government moves ahead with the plan to increase VAT, it will prove fatal to the petroleum industry,” he added.

Singh said they sent a letter to chief minister Hemant Soren on Wednesday in which they reasoned that increasing VAT was not the only solution to jack up revenues.

“Competitive prices are the only way to generate good sales and increase revenues. Sale of petroleum products has started picking up and it will hopefully generate the expected revenue for the state within the next few months,” Singh said.