Petrol and diesel prices increased in Punjab by 92 paise and 88 paise per litre, respectively, following the upward revision in value added tax (VAT) on fuel by the state government, said fuel pump owners on Sunday.

With the increase in VAT, retail prices of petrol and diesel (in Mohali) rose to Rs 98.95 a litre and Rs 89.25 per litre, respectively, they said.

The new retail prices have come into effect from midnight of June 10 and 11.

This is the second time that fuel prices were increased this year. In February, the AAP government had imposed a cess of 90 paise per litre on both petrol and diesel.

The notification with regard to increase in VAT on fuel was issued by the state excise and taxation department on Saturday.

Mohali-based fuel owner Ashwinder Singh Mongia said VAT on diesel has been increased by 1.13 per cent to 12 per cent, while tax on petrol has been increased by 1.08 per cent to 15.74 per cent.

Mongia said with the hike in VAT, the petrol and diesel rates in Punjab will be more than what prevails in neighbouring states.

Giving comparison of the fuel prices in neighbouring states, Mongia said retail prices of diesel and petrol in UT Chandigarh stood at Rs 84.26 per litre and Rs 96.20 a litre respectively.

In Himachal Pradesh, the price of diesel was Rs 85.44 per litre and that of petrol was Rs 96.29 per litre.

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