Punjab cuts petrol, diesel prices by Rs 10 and Rs 5 per litre from tonight

NEW DELHI: In a major boost to consumers, Punjab Chief Minister Charanjit Singh Channi on Sunday said that the state government has decided to cut petrol and diesel prices by Rs 10 per litre and Rs 5 per litre, respectively.

"We have decided to decrease petrol and diesel prices by Rs 10 per litre and Rs 5 per litre, respectively, to be effective from midnight today," Charanjit Singh Channi was quoted as saying by news agency ANI.

We have decided to decrease petrol and diesel prices by Rs 10 per litre and Rs 5 per litre, respectively, to be effective from midnight today: Punjab CM Charanjit Singh Channi pic.twitter.com/Q3PP1scPeo — ANI (@ANI) November 7, 2021

The new prices will come into effect from midnight today, he added. 

Shiromani Akali Dal President Sukhbir Singh Badal had earlier urged the Charanjit Singh Channi-led Congress government to reduce VAT rate on petrol and diesel to provide relief to the consumers.

The announcement from CM Channi came days after the Centre slashed excise duty on petrol and diesel by Rs 5 and Rs 10 per litre respectively, a move aimed at offering relief to consumers by lowering pump rates and easing prices of daily staples for the common man. 

Reducing the excise duty, the Union government urged the states to commensurately reduce VAT on petrol and diesel to give relief to consumers. The reduction, however, varied in other states in accordance with the level of VAT levied. 

States with higher VAT will see a slightly higher reduction in pump prices. The higher passthrough is because of an incremental decrease in state levy as VAT is charged after excise duty and dealer commission.

Several states, including UP, Haryana, Gujarat, Goa, Manipur, Tripra, had also announced a reduction in VAT on the fuels on Thursday, making them cheaper by Rs 10-12 per litre.