Residents of the city will get a relief of up to Rs 5 on the prices of petrol and diesel as the UT Administration will follow the directions of the Government of India.
Sources in the Administration said the directions of the Centre to reduce tax on petroleum products would be implemented as soon as the Administration received these in writing.
Finance Minister Arun Jaitley today announced relief for citizens in the fuel prices with an oil duty cut of Rs 1.50 and another Re 1 cut by oil marketing companies. He urged the states to match the efforts of the Centre by reducing value-added tax (VAT) by Rs 2.50 so that the total benefit to citizens was at least Rs 5.
The tax on petroleum products is already the lowest in the city as compared to Mohali and Panchkula as the Administration had reduced tax in October 2017. The Administration had reduced VAT on diesel from 16.40 per cent to 11.40 per cent. Similarly, the tax on petrol, including branded premium petrol, was slashed from 24.74 per cent to 19.74 per cent.
