Puducherry Petrol and Diesel Prices Surge Amid VAT Hike

In Puducherry, petrol and diesel retail prices have increased by Rs 2 per litre following a hike in the Value Added Tax (VAT) rate by the local government. The VAT adjustment aims to boost revenue, with territorial variations in the new rates across different regions.

In Puducherry, retail prices for petrol and diesel have been increased by Rs 2 per litre as of Wednesday, after the territorial government raised the Value Added Tax (VAT) rate to boost revenue. The government embarked on this VAT revision strategy to generate funds necessary for its expenditure needs.

For petrol, VAT in the Puducherry region was adjusted upward from 14.55% to 16.98%, hiking the price to Rs 96.26 per litre, up from Rs 94.26. In Karaikal, a similar tax increase led to prices climbing from Rs 94.03 to Rs 96.03. Mahe region saw VAT rates jump from 13.32% to 15.79%, and prices rose to Rs 93.92 from Rs 91.92. In Yanam, VAT spiked from 15.26% to 17.69%, increasing the price from Rs 94.92 to Rs 96.92 per litre.

Diesel also saw a hike, with VAT on it moving from 8.65% to 11.22% in the Puducherry region, taking the price to Rs 86.48 from Rs 84.31 per litre. Similarly, rates for Karaikal, Mahe, and Yanam were adjusted, leading to respective price increases across these territories. Official sources highlighted that although prices rose, petrol and diesel costs in Puducherry remain lower than in neighboring states, offering potential for further revenue mobilization.

(With inputs from agencies.)