With the UT Administration slashing VAT on petrol and diesel by 5 per cent, the fuel prices in Chandigarh will come down by Rs 2, effective from Wednesday. The fuel prices in Chandigarh will now be the lowest in the tricity.

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 in the city. The new 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 the excise duty levied on petrol and diesel recently and had urged the states to cut VAT on fuel to give further relief to people.

Arjun Singh, president of the Chandigarh Petroleum Dealers Association told the media, “Though it will not affect the sales as people use fuel judiciously, they will be happy with the decision ahead of Diwali.”

Mohali and Panchkula petrol dealers are a worried lot and have also sought a cut in VAT. “Himachal Pradesh has already reduced the tax and now Chandigarh has also decreased it. It must be brought down in Panchkula too, at least on a par with Chandigarh. Residents will prefer filling fuel from Chandigarh, causing a revenue loss to Haryana,” said Bhagwan Dass Mittal, a spokesman for the Panchkula Petroleum Dealers Association.

"Petrol stations in Mohali will virtually close following this decision. The government must bring the prices of fuel in the tricity on a par," said GS Chawla, a dealer of various petrol stations in Mohali and other parts of Punjab.

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