Petrol price down ₹11, diesel’s plunges by ₹18 in Chandigarh

Following the Centre’s cut in excise duty and further reduction in VAT by the UT administration, fuel prices have dropped drastically in Chandigarh

Following the Centre’s cut in excise duty and further reduction in VAT by the Chandigarh administration and Haryana government, fuel prices have dropped drastically in Chandigarh and Panchkula.

With the Punjab government failing to announce any VAT cut, the price gap with Mohali has further widened.

However, with the Punjab government failing to announce any VAT cut, the price gap with Mohali has further widened.

The Union government slashed excise duty on petrol by ₹5 and on diesel by ₹10 on Diwali eve. Following its lead, the UT administration reduced VAT on both fuels by ₹7. According to a notification issued by the excise and taxation department on Thursday, VAT on petrol has been reduced from 22.45% to 15.24%, and on diesel from 14.02% to 6.66%.

Even the Haryana government announced VAT cut, which reduced the price of both petrol and diesel in the state by ₹12 per litre. Currently, prices continue to be the lowest in Chandigarh, with petrol available for ₹94.23 and diesel for ₹80.9 on Friday. The prices stood at ₹105.24 and ₹98.96, respectively, on Wednesday.

Meanwhile, the Punjab government is yet to slash VAT, hitting fuel stations in Mohali.

“We saw no customers owing to the huge gap in fuel prices. The Punjab government must act fast or declining fuel sales will directly affect its revenues,” said Ashwinder Mongia, president, Mohali Petroleum Dealers’ Association.

In Chandigarh, transporters hailed the fuel price cut. “The relief is too late, but we are thankful for it. This is likely to bring down inflation. The Centre must bring fuel, especially diesel, under GST regime to prevent a repeat of such a situation,” said BL Sharma, general secretary, Chandigarh Transport Association.