After Centre's cut, Punjab govt slashes fuel prices further

Days after the Centre’s move to slash fuel prices on the eve of Diwali, the Punjab government has announced an additional cut in diesel and petrol prices across the state.

The prices of petrol and diesel have been cut by ₹10 and ₹5 respectively, ahead of the 2022 Assembly polls in Punjab.

Announcing the price cut, Punjab chief minister Charanjit Singh Channi said that something like this “hasn’t happened in 70 years”.

“Petrol in Punjab has become cheapest in the region. As compared to Delhi, petrol in Punjab is now ₹9 less,” CM Channi said, adding that the reduced prices would come into effect from Sunday midnight.

Also read: 18 states, 6 UTs slash taxes on fuel. Read on to know prices in your city

When the new prices come into effect, one litre of petrol would cost ₹96.16 in the state, and one litre of diesel would cost ₹84.80. The fuel prices in Chandigarh are going to be cheaper than in other parts of the state, with petrol at ₹94.23 and diesel at ₹80.

The Centre had reduced excise duty on petrol and diesel by ₹5 and ₹10 on the eve of Diwali, in a move that was expected to further boost the BJP’s image, ahead of the next round of elections in five states.

A total of 18 states and six Union territories (UTs), including 10 BJP-rules states, have reduced state taxes on petrol and diesel in response to Prime Minister Narendra Modi’s appeal to states to bring down Value-Added Tax (VAT) on fuel to give relief to the common man. The states that have reduced VAT are Gujarat, Uttar Pradesh, Bihar, Haryana, Karnataka, Madhya Pradesh, Himachal Pradesh, Tripura, Manipur, Goa, Assam, Uttarakhand, Sikkim, Mizoram, Nagaland, Meghalaya, Arunachal Pradesh and Biju Janata Dal-ruled Odisha.

Six Union territories, including Chandigarh, Jammu and Kashmir, Ladakh, Puducherry, Lakshadweep and Dadra and Nagar Haveli and Daman and Diu, have also cut VAT on fuel.