Punjab Prime Minister Charanjit Singh Channi announced on Sunday that Petrol and diesel prices would be lowered by 10 and 5 rupees per litre, respectively, starting at midnight on Sunday. Now Petrol costs Rs 95 per litre and diesel Rs 83.75 per litre in Punjab. “The people of Punjab may consider it a Diwali gift. We will give them more such gifts in the future. Also, they have been very stressed in recent years, but we are taking steps to help people to relieve pressure in all sectors, he said, referring to decisions such as the reduction of electricity rates by his government.
This step follows the decision of the centre to reduce excise duties. The Punjab government would now have to bear a total loss of almost 4,151 billion rupees per year due to the reduction of consumption taxes by the central government and the value-added tax (VAT). Channi said that the cut in VAT rates on petrol and diesel would now lead to higher fuel consumption, a decrease in inflation for the middle and poor classes, and a boost in the overall economic cycle.
The Centre may cut taxes on petrol and diesel ahead of elections in certain states
However, the Prime Minister said that Punjab now had the lowest petrol prices in the region, except UT Chandigarh (94.21 rupees) and that diesel prices in the state are also much lower than in neighbouring Haryana (86.53 rupees) and Rajasthan (100.46 rupees). The Punjab government reduced VAT on Petrol from 27.27% to 15.15% and on diesel from 17.57% to 10.91%. Meanwhile, ten states ruled by BJP, Assam, Tripura, Manipur, Karnataka, Goa, Uttar Pradesh, Gujarat, Haryana, Himachal Pradesh, and Uttarakhand, have followed suit and announced further reductions in Petrol and Diesel prices. Of these states, assembly polls are due in Uttar Pradesh, Uttarakhand, Goa, and Manipur.
