Petrol, diesel price in Punjab hiked. Check new rates
- The VAT rate of diesel will increase by 0.92 paise per litre and that of petrol will increase by 0.61 paise per litre.
The Punjab government has increased Value Added Tax (VAT) on petrol and diesel in an effort to increase earnings from revenue. During a cabinet meeting on Thursday (September 5), the state government decided to increase fuel price by 13.09 per cent for diesel while petrol price will see an increase of 16.52 per cent per litre. These are besides the 10 per cent surcharge on VAT the state government charges on fuel price. According to the Punjab government, the decision to hike fuel prices will help it earn up to ₹3000 crore.
According to the latest fuel price hike, petrol price has gone up by 61 paise per litre while diesel price has been increased by 92 paise per litre. Before the hike is implemented, petrol and diesel prices are higher in Punjab than neighbouring Chandigarh. A litre of petrol costs ₹97.62 in Mohali while customers in Chandigarh pay ₹94.29. Similarly, diesel costs ₹88.13 per litre in Mohali, about ₹6 per litre more than what it costs in the neighbouring city.
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The new rate of petrol and diesel will be implemented in the state from today. The petrol price in Mohali will be ₹98.23 per litre while diesel will cost ₹89.05 per litre. The fuel price is the highest in Mohali among the Tricity, which include Chandigarh and Panchkula. A litre of petrol costs ₹95.83 in Panchkula while diesel costs ₹88.65 per litre.
The decision to increase VAT on petrol and diesel in Punjab triggered criticism from various petrol pump dealers. The Petrol Pump Dealers' Association in Punjab, slammed the state government saying that its decision will hurt their business. Monty Sehgal, a spokesperson of the dealers' body, said, “Petroleum dealers are already facing a significant decline in sales due to neighbouring state and Union Territory (UT) offering lower VAT on fuel. This increase will only exacerbate the situation, leading to a substantial loss of revenue for both dealers and the state government."
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Ashwinder Singh Mongia, a petrol pump dealer based in Mohali, fears the decision to hike petrol and diesel prices will encourage smuggling of fuel from other states. According to him, dealers neighbouring states like Himachal Pradesh or UTs like Jammu will benefit immensely from this decision as the cost of petrol and diesel are far more affordable in these places than Punjab.
Petrol price in Jammu is currently at ₹81.26 per litre while diesel price stands at ₹95.41 per litre. Petrol price in Una, Himachal Pradesh, stands at ₹93.2 per litre while diesel costs ₹85.57 for a litre.
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