Puducherry Jan 1 (PTI) Retail prices of petrol and diesel have gone up in Puducherry by Rs 2/litre from Wednesday after the territorial government hiked Value Added Tax rate.

The government had revised the VAT on the fuel to increase revenue to meet its expenditure.

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The VAT on petrol sold in Puducherry region has been increased from 14.55 per cent to 16.98 per cent. As a result petrol price has gone up to 96.26/litre from Rs 94.26/litre from Wednesday, an official release said.

VAT on petrol in Karaikal region has gone up from 14.55 per cent to 16.99 per cent. As a result, the petrol price has gone up from Rs 94.03 to Rs 96.03 per litre.

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The VAT on petrol sold in Mahe region has been increased from 13.32 per cent to 15.79 per cent and as a result the petrol price shot up from Rs 91.92 per litre to Rs 93.92. In Yanam region, VAT on petrol has gone up to 15.26 per cent to 17.69 per cent leading to a hike in price from 94.92 per litre to Rs 96.92.

The VAT on diesel gone up from 8.65 per cent to 11.22 per cent in Puducherry region; from 8.65 per cent to11.23 per cent in Karaikal region, from 6.91 per cent to 9.52 per cent in Mahe region and from 8.91 per cent to 11.48 per cent for Yanam region.

The price of diesel consequently has shot up in Puducherry region to Rs 86.48 per litre from Rs 84.31; in Karaikal region to Rs 86.31 from 84.31; in Mahe to Rs 83.90 from Rs 81.90 per litre; and in Yanam region to Rs 86.75 from Rs 84.75 per litre.

Official sources said that as there was a huge difference in prices of petrol and diesel between Puducherry and neighbouring States there was still scope for revenue mobilisation as prices of the fuel in Puducherry are still lower than the neighbouring states.

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