CHANDIGARH: Punjab government has hiked prices of Petrol and diesel prices  by 91 paisa and 16 paisa respectively.

The hike is affected by way of re-imposing VAT on the fuel prices, which will bring a revenue of Rs 100 crore to the state, an official spokesman said on Tuesday. The price hike came into effect from Monday midnight. The former Congress government had withdrawn VAT on the hiked portion of fuel prices in view of their escalating prices.

From September last year, the government had stopped collecting VAT on Rs 4 per litre on petrol and Rs 2 per litre on diesel in order to provide relief to fuel consumers of the state.

Meanwhile, Punjab Petrol and Dealers Association said it feared that more people would now go to Haryana and Chandigarh for getting their vehicles' fuel tanks filled. This will result in loss to Punjab petrol dealers, it said.

With this decision, petrol in Punjab will be costlier by Rs 5 per litre as compared to Haryana and Rs 3.5 per litre as against petrol price in Chandigarh, he said.