As per the notification issued in this regard, the rate of sales tax on petrol and diesel has been fixed at five per cent. Earlier, the sales tax on petrol and diesel was charged from the customers at .5 per cent. The new rate of motor spirit is effective from today, the notification added.

The petrol which presently costs Rs 22.63 a litre will now be available at Rs 23.71. Similarly, the price of diesel has also gone up by 42 paise from Rs 9.80 to Rs 10.22 a litre. Interestingly, diesel is to cost 42 paise more than in the neighbouring townships of S. A. S. Nagar and Panchkula following the change in present sales tax structure.

Expressing resentment over the hike, the president and general secretary of Chandigarh Petroleum Dealers Association, Arjan Singh and Amanpreet Singh, respectively, said this would kill the diesel trade in Chandigarh. They said that it would force the entire diesel trade to shift out of Chandigarh, causing revenue loss to the Administration and said that this would certainly affect the prices of other essential commodities.

Apart from sales tax, Chandigarh dealers have to pay a central sales tax at the rate of 4 per cent on the petroleum products that come from Haryana, which the traders from Mohali and Panchkula do not, it is stated.

President of Panchkula Petrol Dealers Association Sethu Ram Singla hailed the decision of UT Administration and said that efforts were being made to bring the sale price of petrol in Panchkula at par with Chandigarh. He said the step was taken by the Administration to the make tax structure uniform in Panchkula and Chandigarh.