Dharmendra Pradhan said there is requirement of funds for the overall development of the country.

Justifying the hike in the taxes on fuel in the Union Budget 2019-20, Union minister Dharmendra Pradhan on Saturday said there is a requirement of funds for the overall development of the country.

"There is requirement of funds for overall development of the country. As there is decline in the price of fuel in international market, Indian economy should take advantage of the situation," the Petroleum and Natural Gas minister told reporters while replying a question on increase of price of petrol and diesel.

Meanwhile, the price of both petrol and diesel has increased in Bhubaneswar on Saturday, a day after Union Finance Minister Nirmala Sitharaman raised taxes on fuel.

While per litre petrol price in Bhubaneswar was Rs 69.41 on Friday, it increased by Rs 2.53 to Rs 71.94 on Saturday.

Similarly, the price of diesel has gone up by Rs 2.65 per litre to Rs 71.51. The price of diesel in Bhubaneswar on Friday was Rs 68.86 per litre.

The Union finance minister on Friday announced raise of excise duty and road and infrastructure cess on petrol and diesel by Rs 2 per litre each.

The diesel price in Odisha is the second costliest in the country after Telangana. This is because Odisha levies the second highest Value Added Tax (VAT) at the rate of 26 per cent on diesel while the rate of VAT in Telangana is 27 per cent.