The government of Punjab on Sunday has increased the Value Added Tax (VAT) on petrol and diesel by 92 paise and 88 paise respectively for retail consumers. Petrol in Punjab would now cost Rs 98.65 per litre whereas Diesel would cost Rs 105.24 per litre respectively. This hike is part of the government's additional resource mobilisation drive.
Previous hike
This is the second hike in this year, the last hike by the Punjab government was in February 2023. The state had increased the VAT by 90 paise per litre for both petrol and diesel. With this hike the government hopes to generate an additional Rs 600 crore per annum as revenue.
Petrol in Punjab cheaper than neighbouring states
Despite the recent hike, petrol in Punjab continues to be cheaper than its neighbouring states Rajasthan and Haryana.
The hike by the Punjab Government comes a day after Union Minister Hardeep Singh Puri said that there is a possibility of a dip in petrol and diesel prices. However, Puri said that he is not in the position to make any announcements on the same but will be using a wait and watch approach.
Petrol, Diesel prices in other cities
In Delhi, petrol and diesel cost Rs 96.72/litre and Rs 89.62/litre, respectively.
In Mumbai, petrol is being sold for Rs 106.31/litre and diesel for Rs 94.27/litre.
Petrol and diesel are priced at Rs 102.63/litre and Rs 94.24/litre in Chennai and at Rs 106.03/litre and Rs 92.76/litre in Kolkata, respectively.
