Following the state government’s revision of the value added tax (VAT) on fuel, the price of petrol and diesel in Punjab increased by 92 and 88 paise per litre, respectively. Retail prices of petrol and diesel (in Mohali) increased due to the VAT increase to Rs 98.95 per litre and Rs 89.25 per litre, respectively, they claimed.
The new retail prices became effective at midnight on June 10 and June 11 respectively.
This is the second time this year that fuel prices have gone up. The AAP government added a 90 paise-per-litre tax to both petrol and diesel in February.
The state excise and taxation department released the notification regarding the increase in fuel VAT on Saturday.
Ashwinder Singh Mongia, the owner of a fuel business in Mohali, claimed that the VAT on diesel had increased by 1.13 percent to 12 percent and the tax on petrol by 1.08 percent to 15.74 percent.
With the increase in VAT, according to Mongia, Punjab’s prices for petrol and diesel will be higher than those in its neighbouring states.
Mongia stated that the retail prices of diesel and petrol in the UT Chandigarh were Rs 84.26 per litre and Rs 96.20 per litre, respectively, when comparing the cost of fuel in neighbouring states.
