CHANDIGARH: The AAP-led Punjab Government has increased petrol price by 92 paise per litre and diesel price by 88 paise for retail consumers, as part of their additional resource mobilization drive.
With the second hike, in one year, the state hopes to generate a revenue of Rs 600 crore per annum.
Rampant smuggling of diesel and petrol from other states to Punjab, due to the price difference, is said to increase.
There are 3,500 petrol pumps across the state of which 1,400 will be affected as these are located on the highways and border areas.
Sources point out that as the spending on the committed liabilities, subsidies and social security pension increases the government has had no other option but to increase the price of petrol and diesel.
Talking with TNIE, Executive Member of the Petrol Pump Dealers Association, Punjab, Ashwinder Singh Mongia says, “ The state government has again increased the VAT on petrol and diesel yesterday by issuing a notification. This is the second hike in the last four months, and it puts a massive financial burden on consumers.
Petroleum dealers face a financial burden, too. In the last four months, the government has hiked petrol and diesel by Rs 2 per litre. Now diesel is Rs 5 costlier in Punjab than in Chandigarh and Rs 4 in Himachal Pradesh. Petrol is Rs 2.75 costlier than Chandigarh. Due to diesel hike, the industry, transporters, farmers and traders will be affected.’’
“ Last year in November a case was registered in Dera Bassi in which 12,000 KL of diesel was caught being smuggled from Himachal Pradesh to Punjab. During interrogation, the driver of the tanker told the police that he used to bring 18 to 20 tankers per month to the factory,’’ he said, talking about petrol smuggling.