Petrol and diesel prices have increased in Punjab
Petrol diesel price hike in Punjab: Petrol and diesel prices are going to increase in Punjab. The state cabinet on Thursday decided to increase the price of petrol by 61 paise and diesel by 92 paise per litre. This decision was taken in the Council of Ministers meeting chaired by Punjab Chief Minister Bhagwant Mann. Currently, retail price of petrol in Mohali is Rs 97.01 per liter and diesel price is Rs 87.21 per litre.
Petrol and diesel prices in Punjab are already higher than Chandigarh. In Union Territory of Chandigarh, petrol and diesel prices are Rs 94.24 and Rs 82.40 per liter respectively. At the same time, petrol pump owners have strongly condemned the Aam Aadmi Party-led government’s decision. They say this will have a negative impact on their business.
Increase in VAT will increase the revenue by Rs. 545 crore will increase
Meanwhile, addressing the media after the meeting, Punjab Government Finance Minister Harpal Singh Cheema said that a decision has been taken to increase VAT on petrol and diesel. He said that VAT will be increased by 61 paise per liter on petrol and 92 paise per liter on diesel. Cheema said that the increase in VAT on fuel will increase the revenue by Rs 395 crore from diesel and Rs 150 crore from petrol.
‘This move will encourage fuel smuggling’
Petrol pump owners said this is the third time in the last two-and-a-half years that the Bhagwant Mann-led government has hiked fuel prices. Meanwhile, reacting to the hike in VAT on fuel, spokesperson of Petrol Pump Dealers Association in Punjab, Monty Sehgal criticized the state government’s decision. He said that the increase in VAT on fuel will affect the sale of petrol and diesel located in border districts.
Monty Sehgal says that due to the government’s decision, his business will move to neighboring states where fuel is cheaper. Ashwinder Singh Mongia, a Mohali-based petrol pump owner, said the move would encourage fuel smuggling which would ultimately lead to loss of tax revenue to the state. He said that fuel is cheaper in Himachal Pradesh and Jammu and Kashmir than in Punjab.
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