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Tribune News Service
Chandigarh, October 17
With the Chandigarh administration today slashing 5 per cent VAT on petrol and diesel, fuel prices in Chandigarh will come down by Rs 2 from Wednesday. Now, the rates in Chandigarh are the lowest in the tricity by a big margin.
The tax on diesel has been slashed from 16.40 per cent to 11.40 per cent while the tax on petrol has been decreased from 24.74 per cent to 19.74 per cent here. Now, the rates of petrol and diesel in Chandigarh are Rs 65.63 and Rs 55.17, respectively. The previous rates were Rs 68.37 for petrol and Rs 57.64 for diesel. The Centre had announced a cut of Rs 2 in excise duty levied on petrol and diesel recently and urged states to cut VAT on fuel to give further relief to people.
Arjun Singh, president of the Chandigarh Petroleum Dealers Association, said, "Though it will not affect sales as people use fuel judicially, they will be happy with the decision ahead of Diwali."
Meanwhile, Mohali and Panchkula petrol dealers are a worried lot and seek a cut in the tax. "Himachal Pradesh has already reduced the tax and now Chandigarh has also decreased it. It must be brought down in Panchkula at least on a par with Chandigarh. Others resident will prefer getting fuel filled from Chandigarh and it will be a revenue loss to Haryana," said Bhagwan Dass Mittal, spokesman for Panchkula Petroleum Dealers Association.
"Petrol stations in Mohali will virtually be closed with this decision. The government must bring the prices of the tricity to an equal level," rued GS Chawla, dealer of different petrol stations in Mohali and other cities in Punjab.
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