Petrol, diesel prices raised by nearly Rs 3 a litre in Chandigarh

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Petrol and diesel prices in Chandigarh will go up by nearly Rs 3 per litre with the Union Territory administration announcing a hike in VAT on fuel by five per cent on Wednesday. The tax hike will generate an additional revenue of Rs 100 crore for the UT administration in 2020-21.

After the revision in prices, petrol in the city now costs Rs 68.62 a litre, a hike of Rs 2.8, and diesel Rs 62.02 per litre, an increase of Rs 2.72.

Before the increase in the tax, the price of petrol and diesel in Chandigarh was Rs 65.82 and Rs 59.30 a litre, respectively.

According to a government statement, VAT on petrol has been hiked from 17.45 per cent to 22.45 per cent. Similarly, the tax on diesel has been raised from 9.02 per cent to 14.02 per cent.

The new prices will be applicable from May 6 midnight.

The union administration's decision came a day after the Punjab government raised VAT on the two fuels.

Despite an increase in VAT, the fuel prices in Chandigarh continue to be lower than that of Punjab.

Prices of petrol and diesel in Mohali stood at Rs 72.58 a litre and Rs 64.05 a litre, respectively.