Punjab cabinet decided to reduce petrol prices by Rs 10 per litre and diesel by Rs 5 per litre in the state, days after the central government announced a reduction in excise duty on fuel.
State finance minister Manpreet Singh Badal said that on reduction effective VAT on diesel will be 9.92% and on petrol 13.77%.
The rates would be reduced from the midnight of November 7.The retail price of petrol in Punjab will be Rs 96.16 per litre and for diesel it will be Rs 84.80 a litre.Talking to the media persons here at Punjab Bhawan after the Cabinet meeting, CM Channi 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).
Punjab has now joined Karnataka, Puducherry, Mizoram, Arunachal Pradesh, Manipur, Nagaland, Tripura, Assam, Sikkim, Bihar Goa, Gujarat, Dadra & Nagar Haveli, Daman and Diu, Chandigarh, Haryana, Himachal Pradesh, Jammu & Kashmir, Uttarakhand, Uttar Pradesh, Odisha, Meghalaya, Ladakh and Madhya Pradesh, to reduce excise duty on fuel.
