Punjab's Fuel Price Surge: VAT Hike to Impact Business

The Punjab Cabinet has decided to increase the value-added tax (VAT) on petrol and diesel by 61 paise and 92 paise per litre, respectively. This hike is expected to generate additional revenue but has been met with criticism from fuel pump owners, who fear business losses and increased smuggling.

Punjab is poised to see a rise in fuel prices as the state Cabinet announced an increase in value-added tax (VAT) on petrol and diesel by 61 paise and 92 paise per litre, respectively.

The decision was taken during a meeting chaired by Chief Minister Bhagwant Mann. Currently, petrol in Mohali is Rs 97.01 per litre, and diesel stands at Rs 87.21, higher than in neighboring Chandigarh.

Fuel pump owners have condemned the move, citing risks to their businesses and potential smuggling into states with cheaper fuel. The VAT hike aims to increase state revenue by Rs 395 crore from diesel and Rs 150 crore from petrol.