Punjab govt hikes VAT on Petrol, diesel. Check latest price

Punjab government on Sunday increased VAT on petrol and diesel price. The Aam Aadmi Party (AAP) government hiked petrol prices by 92 paise and diesel by 88 paise for retail customers.

The cost of one litre of petrol in the state will now be ₹98.65 while diesel prices will be ₹105.24 per litre in Chandigarh. Since June, the cost of 1 litre of petrol in Chandigarh was ₹96.20 and diesel was ₹84.26/litre. With the recent hike, the state hopes to generate an additional ₹600 crore per annum as revenue.

According to the latest data by Oil Marketing Companies (OMCs), almost every city in Punjab has petrol rates in the range of ₹98 as of 10 June. Jalandhar has the lowest petrol rate at ₹98.06/litre and Pathankot has the highest petrol price at ₹99.01/litre.

On the other hand, Barnala has the lowest diesel rate at ₹88.28/litre in Punjab and Pathankot has the highest diesel price at ₹89.30/litre as of 10 June.

This is the second hike in fuel rates by Chief Minister Bhagwant Mann's government.

Earlier in February, the Punjab state cabinet approved the decision to impose 90 paise VAT on petrol and diesel to earn additional revenue of ₹300 crore annually.

Separately, Petroleum Planning & Analysis Cell (PPAC) released data on India's petrol and diesel consumption in May this year, highlighting the robust demand among consumers for both fuels. As per the data, India's diesel consumption rose 12.8% YoY and 5% month-on-month to 8.22 million times in May.

Diesel accounts for a little over 40% of all petroleum products consumed in India, followed by petrol, which has a share of around 17%.

Petrol consumption in May was 3.35 million tonnes, up 11% YoY and 16.4% month-on-month.