Punjab’s state government has implemented an upward revision in value-added tax (VAT) on fuel, resulting in an increase in petrol and diesel prices. Fuel pump owners reported that retail prices of petrol in Mohali have risen to Rs 98.95 per litre, while diesel prices now stand at Rs 89.25 per litre, as of Sunday.
The hike in VAT has led to a surge in petrol prices by 92 paise per litre and diesel prices by 88 paise per litre. This move has sparked a sharp reaction from opposition parties, who consider it an anti-people decision by the AAP government. They argue that it will place an additional burden on the common man and farmers.
Effective from the midnight of June 10 and 11, the revised retail prices mark the second fuel price increase this year. In February, the AAP government imposed a 90 paise per litre cess on both petrol and diesel. The state excise and taxation department issued the notification regarding the VAT increase on fuel on Saturday.
According to Ashwinder Singh Mongia, an owner of a fuel outlet in Mohali, the VAT on diesel has risen by 1.13 percentage points to 12%, while the tax on petrol has increased by 1.08 percentage points to 15.74%. As a result of the VAT hike, petrol and diesel rates in Punjab will exceed those in neighboring states.
Providing a comparison, Mongia highlighted that the retail prices of diesel and petrol in Chandigarh’s UT are Rs 84.26 per litre and Rs 96.20 per litre, respectively. In Himachal Pradesh, diesel is priced at Rs 85.44 per litre, and petrol stands at Rs 96.29 per litre.
Sukhbir Singh Badal, the chief of Shiromani Akali Dal, condemned the AAP government for burdening the common man and farmers with the increased VAT on petrol and diesel. Badal demanded an immediate withdrawal of this arbitrary hike, stating that the government should focus on saving money by reducing its advertising expenditure instead.
The Punjab Congress chief, Amrinder Singh Raja Warring, also expressed condemnation over the rise in fuel prices. He described it as another anti-people decision by the Bhagwant Mann-led AAP government and emphasized the financial burden it imposes on the people of Punjab. The Punjab Congress appeals to the government to repeal this price hike.
