Punjab Government on Sunday increased the Value-Added Tax (VAT) on fuel by 10 per cent, taking the price of petrol and diesel in the state up by 92 paise per litre and 88 paise per litre, respectively, for retail consumers.
With the implementation of the new rates from Sunday midnight, the prices in Mohali stood at Rs 98.95 per litre of petrol and Rs 89.25 per litre for diesel. The state’s state Excise and Taxation Department has issued a notification in this regard.
The fuel hike, second time during the current year, is said to be announced as a part of the State Government’s decision regarding additional resource mobilization. With the move, the government is expecting to generate an additional revenue of Rs 600 crore every year.
Punjab Petrol Pump Dealers’ Association claimed that petrol is available for Rs 96.20 per litre in Chandigarh, Rs 96.29 per litre in Himachal Pradesh, Rs 97.34 per litre in Haryana, and Rs 97.5 per litre in Jammu. Similarly, the diesel price in Chandigarh is Rs 84.26, Rs 85.44 in Himachal Pradesh, Rs 90.19 in Haryana, and Rs 83.26 per litre in Jammu.
Punjab Petrol Pump Dealers’ Association spokesperson Monty Sehgal said that the hike would mean an increase in margin for those smuggling fuel from Himachal Pradesh to Punjab. “Mass smuggling from the neighbouring state is already going on. The mafia is going to benefit…We have already given a representation to the Chief Minister.”
Sehgal said that in the last 10 years, only former Chief Minister Charanjit Singh Channi had reduced VAT on fuel by a massive Rs 10 per litre on petrol and Rs five per litre on diesel.
At the same time, the State Government official said that despite increase in VAT, the price of diesel in Punjab would be cheaper than the neighbouring Haryana; and the prices of both diesel and petrol would also be cheaper than Rajasthan.
The cost of one litre of petrol in the state will now be Rs 98.65, while diesel price will be Rs 88.95 per litre.
Opposition Slams AAP, CM
Condemning the AAP Government's decision to increase VAT on petrol and diesel prices, Punjab Pradesh Congress Committee president Amrinder Singh Raja Warring on Sunday said that this ‘Badlaav’ is a clear sign of the AAP Government's incompetence which will only burden common man’s pocket.
Accusing the AAP government of putting an additional burden on the common man, Warring said that the AAP Government has once again shown its disregard for the common man. “The decision to increase VAT on petrol and diesel prices would only make it harder for people to make both ends meet. It is a clear sign that the so-called ‘Aam Aadmi’s’ government has gone out of touch with the needs of the common man,” he said.
Warring said that the Congress party has always been committed to providing relief to the common man. He said that under the leadership of Chief Minister Charanjit Singh Channi the Congress government in Punjab had reduced VAT by massive Rs 10 per litre on petrol and Rs five per litre on diesel to ease common man’s financial burden.
Coming down heavily on the AAP government, he said that while the Congress party paid heed to the problems of the people of the state, the incompetent AAP leadership chose to increase taxes and ignore the plight of the people of Punjab, only to make their life more difficult. “AAP government should focus on fulfilling its poll promises. Instead of making people’s life hell, it must work on reducing the state's expenditure and improving the quality of life of the people of Punjab,” he added.
Punjab Congress chief said: whether it is about the law and order situation, finances or other serious issues of Punjab, Bhagwant Mann-led Government is absolutely incompetent to handle the border state. He also said that the poor governance exposes the fact that Punjab is paying a very heavy price for AAP leadership’s inexperience.
Saying that the increase in the VAT on petrol and diesel would lead to an increase in the cost of transportation and other essential commodities and would have a negative impact on the people of Punjab, Warring urged the AAP Government to immediately withdraw its decision to increase VAT on petrol and diesel prices.
Shiromani Akali Dal (SAD) president Sukhbir Singh Badal, also condemning AAP Government for putting an unprecedented burden on the common man and farmers by repeatedly increasing VAT on petrol and diesel, demanded an immediate withdrawal of the arbitrary increase. The latest hike has made petrol and diesel amongst the costliest in the region, he said.
He said that instead of causing misery to the common man, the Government should save money by putting the brakes on its multi-hundred crore advertising spend. “There won’t be any need to raise additional resources, as is being asserted by the AAP Government, if it ends its reckless advertisements as well as publicity gimmicks,” he added.
“On the one hand, the Government is claiming that it is giving 300 units free power but on the other it had severely pruned several social welfare benefits including old age pension scheme, aata - daal scheme, Shagun scheme and SC Scholarship scheme. It has also put an end to free cycles for girls scheme, Teerath Yatra scheme, free utensils scheme, gyms as well as Suvidha Kendras and Sewa Kendras. Now, it has increased VAT on petrol and diesel. This only shows the duplicitous nature of this government which is taxing the people above and beyond the benefits extended to them. It is a true case of giving with one hand and taking back with two,” he added.