The sales tax on both the fuels, which was 21 per cent, would now be 23 per cent and 25 per cent on diesel and petrol respectively, chief minister Manohar Joshi told reporters after the weekly cabinet meeting.

There would be an estimated rise of 75-80 paise per litre of petrol, while diesel would cost 15-16 paise more, Joshi said.

The chief minister said the enhanced rates were still lower or on a par with those existing in neighbouring states of Andhra Pradesh, Madhya Pradesh and Gujarat.

Joshi also announced reduction in sales tax from 4 per cent to 1 per cent on the copper rods produced by Hindustan Coppper, a public-sector unit with its plant at Raigad.

The government will benefit by about Rs 50 lakh annually as there will be an increase in copper-rod sales, he said. The sales tax on copper rods is 1 per cent inAndhra and Madhya Pradesh.