Retail prices of petrol and diesel will go up by Rs 2 per litre each in Punjab as the state government increased the tax on petrol and diesel on Tuesday night.
It raised the value added tax (VAT) on diesel from 11.80 per cent to 15.15 per cent and on petrol from 20.11 per cent to 23.30 per cent, official said.
The new rate will come into effect from midnight.
After the raise in VAT on fuel, the retail rate of petrol will increase from Rs 70.38 a litre to 72.43 a litre, while the rate of diesel will go up from Rs 62.02 a litre to Rs 64.06 a litre, said Ashwinder Mongia, a member of the Punjab Petroleum Dealers Association.
