Punjab govt hikes VAT on petrol and diesel

Chandigarh: The Punjab government on Sunday increased the Value-Added Tax (VAT) on petrol and diesel in the state.

The cost of one-litre petrol in the state will be Rs. 98.65 while diesel prices will be Rs.105.24 per litre.

In a bid to go for additional resource mobilisation, the Punjab Government has decided to impose an additional duty on Value Added Tax (VAT) for both petrol and diesel, making retail fuels expensive for the common man.

As a result, the price of petrol in the state will go up to Rs 96.20 for diesel and Rs 84.26 per litre, as would be the case in Mohali. Based on local taxes, the rates of fuel vary in different districts. Petrol prices in Punjab would be the highest amongst states north of Delhi and diesel prices would be second only to Haryana. The new rates will come into effect after the agenda approved by the Cabinet has been notified in a day or so.

The last time the rates were revised was in February 2023 by the then government.