Diwali gift: Chandigarh set to slash VAT on petrol, diesel by ₹7

Earlier in the day, the Union government decided to reduce excise duty on petrol by ₹5 and on diesel by ₹10

Following the Centre’s announcement of excise cut on petrol and diesel sales, the Chandigarh administration is also set to give additional relief to the city residents.

In Chandigarh, petrol was priced at ₹105.94 per litre and diesel was available for ₹98.16 per litre on Wednesday.

The administration is like to reduce the state value added tax (VAT) on petrol and diesel by ₹7. Earlier in the day, the Union government decided to reduce excise duty on petrol by ₹5 and on diesel by ₹10.

“Centre had also urged the states to reduce VAT on petrol and diesel. Following it, the administration has decided to reduce the state VAT by ₹7,” said a senior UT official, who did not wish to be named.

At the time of filing of this news report, it is learnt, the administration was processing the official order on the reduction in VAT. The order was expected late at night or early Thursday morning.

In Chandigarh, petrol was priced at ₹105.94 per litre and diesel was available for ₹98.16 per litre on Wednesday. Petrol had breached the ₹100 mark on October 10 after successive hikes in fuel prices. At the beginning of the year, petrol was available for ₹81 and diesel for ₹74.