Lucknow, Aug 20 (IANS) Petrol and diesel will cost more in Uttar Pradesh from Tuesday after the state government hiked Value Added Tax (VAT)on both.

A litre of petrol will now cost 98 paisa more across the state while a litre of diesel has become dearer by Rs 2.35.

The rise in prices of the fuel comes after the state government decided to increase VAT on petrol to 26.80 per cent while that on diesel to 17.48 per cent. The new and hiked prices came into effect at midnight on Monday.

The hike in prices is bound to have a cascading effect on the household budgets and the transport sector.

--IANS amita/dpb