Channi announced the move, which is set to cost the cost the state exchequer Rs 1000 crore annually, after a Punjab Cabinet meeting.
The Punjab government announced a decrease in petrol and diesel prices by Rs 10 and Rs 5 respectively, ahead of Assembly elections in the state in 2022. Chief Minister Charanjit Singh Channi said the reduced prices, owing to decrease in the value added tax levied on diesel and petrol, will come into effect from Monday, 12 am.
Channi announced the move, which is set to cost the cost the state exchequer Rs 1000 crore annually, after a Punjab Cabinet meeting. Channi said such a measure has not been taken in 70 years, adding that petrol in Punjab has become the cheapest in the region. “As compared to Delhi, petrol in Punjab is now Rs 9 less,” he said.
The prices of petrol and diesel comprise of the basic oil price, value added tax, central excise and commission to dealers. As fuel prices continued to rise, the Centre has last week announced a cut in excise duty on petrol by Rs 5 per litre and Rs 10 a litre on diesel.
Currently, the petrol and diesel rates in Punjab are Rs 106.20 and Rs 89.83 per litre respectively.
The Shiromani Akali Dal, Bharatiya Janata Party and the Aam Aadmi Party had been demanding the state government to reduce tax on fuel to provide relief to consumers.
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