The Punjab government has announced a reduction in petrol and diesel prices by Rs 10 per litre and Rs 5 per litre respectively. The new prices will come into effect from Sunday 7 Nov.
Announcing a reduction in value-added tax (VAT) on fuels, Punjab Chief Minister Charanjit Singh Channi said that this is the first time in the last 20 years that the state has slashed petrol and diesel price.
Punjab minister Manpreet Singh Badal said that the state government will bear a loss of Rs 900 crores per annum after slashing petrol and diesel prices.
The state government’s announcement follows the Centre’s move to reduce excise duty levied on fuel.
On Wednesday, the central government announced a cut in the excise duty on petrol and diesel by Rs 5 and Rs 10, respectively, bringing down their retail rates from record highs.
Reducing the excise duty, the Union government had urged states to commensurately reduce VAT on petrol and diesel to give relief to consumers.