Punjab Government on Tuesday increased the prices of Petrol and Diesel by Rs 2 per litre each, with effect from midnight. The state government amended the value-added tax (VAT) to hike rates of diesel and petrol by about Rs 2 per litre. The hike will be effective from the intervening midnight of May 5 and 6.
The decision came after Delhi which has already raised diesel price by Rs 7.15 and petrol by Rs 1.67. Also, Haryana had increased the petrol prices by Rs 1 and diesel by Rs 1.10.
The Punjab Government on Tuesday late evening notified the amendments in Schedule E appended to the Punjab Value Added Tax Act, 2005 thereby increasing the “rate of tax”, from “11.8 percent to 15.15 percent”.
The amendments were notified after due approval to the same by the Governor in exercise of powers conferred by sub-section (3) of Section 8 of the Punjab Value Added Tax Act, 2005 (Punjab Act No.8 of 2005), and all the other powers enabling him in this behalf.
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Meanwhile, the Central Government on Wednesday increased the excise duties by Rs 10 per litre on petrol and Rs 13 per litre on diesel. The retail sale prices of petrol and diesel will, however, not change on the account of this increase in duties. These duty rate changes shall come into effect from May 6, 2020. The price hike will be absorbed by Oil Marketing Companies leading to no increase in retail prices of fuel at the pump.
-PTC News