Chandigarh, June 11 : Cash-strapped Punjab government on Sunday increased petrol price by 92 paisa per litre and diesel price by 88 paisa.

Earlier, in February, 2023, the Punjab government imposed a 90 paise per litre VAT on petrol and diesel. This was done in order to raise additional revenue for the state.

VAT or Value Added Tax is a consumption tax that is levied on goods and services at each stage of their production and distribution, up to and including the point of sale. The VAT is ultimately borne by the consumer, but it is collected from businesses at each stage of the supply chain.