Punjab slashes petrol & diesel prices by Rs.10 and Rs.5 per litre

In a major reprieve to people, Punjab Chief Minister Charanjit Singh Channi on Sunday announced to slash the prices of petrol and diesel by Rs.10 and Rs.5 per litre, respectively, from Sunday midnight.

The decision was taken by the Chief Minister in state Cabinet meeting on Sunday. The CM said that with this decision now Punjab has the lowest petrol rates in the region (except UT Chandigarh) and the rates of diesel in Punjab are also much lower than Haryana and Rajasthan.

With this decision, the rate of VAT on Petrol has been reduced from 27.27% (24.79%+10% surcharge) to 15.15% (13.77%+10% surcharge) and on Diesel from 17.57 % (15.93%+10% surcharge) to 10.91% (9.92%+10% surcharge).

Taking a dig at the BJP led government at Centre, Channi said that it is really unfortunate on the part of its leadership to slash the prices of petrol and diesel by Rs.5 and Rs.10 per litre respectively w.e.f November 4, 2021 thereby cutting down the excise duty, which adversely impacts the income of all states including Punjab having 42% share in the excise duty collected by Centre.

The Chief Minister said after slashing the VAT on petrol and diesel, the new petrol rate in Punjab from tonight would be Rs.95/litre instead of earlier Rs.105/litre.

Likewise, the new diesel rate would be Rs.83.75/litre from tonight instead of Rs.88.75/litre as compared to Delhi, where the prevailing rate of petrol is Rs.104.01/litre and diesel Rs.86.71/litre, respectively.

In order to bring parity in the rates of VAT on petrol and diesel with neighbouring states/UTs and to give a boost to the farmers of Punjab during the upcoming Rabi season and relief to consumers in general, CM Channi said that his government has taken a significant decision of reducing VAT on Petrol and Diesel by Rs. 10 and Rs. 5 respectively from midnight of 7th November.

The retail prices of petrol and diesel will thus come down accordingly.