Punjab Government reduces Petrol price by ₹10, Diesel by ₹5 – Punjab News

On Petrol and Diesel on Sunday, making them cheaper in Punjab by  ₹10 and ₹5 per liter

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Currently, petrol and diesel rates in Punjab are Rs 106.20 and Rs 89.83 per liter respectively.

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Chandigarh, 7 November 2021, During a considerable reprieve to the people across Punjab, The Punjab Chief Minister Charanjit Singh Channi on Sunday announced to cut the charges of Petrol and Diesel by Rs.10 and Rs.5 per liter independently from the night here and now. Talking to the media persons then at Punjab Bhawan after the press meeting, CM Channi said that with this decision now Punjab has per- time low petrol cost within the area (except UT Chandigarh) and thus the cost of Diesel in Punjab similarly are much lower than Haryana and Rajasthan. 

With this decision, the rate of VAT on Petrol has been reduced from27.27 (24.79 10 surcharges) to15.15 (13.77 10 surcharges) and on Diesel from17.57 (15.93 10 surcharges) to10.91 (9.92 10 surcharges). Taking a dig at the BJP led government at Centre, CM Punjab Channi said that it’s really unfortunate on the part of its leadership to slash the costs of petrol and diesel by Rs.5 and Rs10 per liter independently. e.f  4th November 2021, thereby reduce down the excise duty, which negatively impacts the income of all states including Punjab having 42 shares in the excise duty collected by the Centre. Citing the relative details of MRPs of diesel and petrol in Punjab and the neighboring states and UTs, after excise duty and VAT rate cuts, CM Channi mentioned as below. 

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The Chief Minister said after slashing the VAT on petrol and diesel, the new petrol rate in Punjab from tonight would be Rs. 95/liter rather than earlier Rs. 105/liter. Likewise, the new diesel rate would be Rs.83.75/liter from tonight rather than Rs.88.75/liter as compared to Delhi, where the prevailing rate of petrol isRs.104.01/liter and dieselRs.86.71/liter, independently. In order to bring equality within the rates of VAT on petrol and diesel with neighboring countries/ UTs and to offer a lift to the growers of Punjab during the coming Rabi season and relief to consumers usually, CM Channi said that his government has taken a big decision of reducing VAT on Petrol and Diesel by Rs.10 andRs.5 independently from a night of 7th November and 8th November.

 Prices of petrol and diesel will therefore come down consequently. The reduction in VAT rates on Petrol and Diesel will increase consumption, a drop in affectation for the poor and middle classes, and boost the generally profitable cycle. As a result of this reduction, the speed of petrol in Punjab is going to be each- time low (except Chandigarh) within the region. Notably, the periodic consumption of petrol and diesel as per 2019-20 numbers is 1352260 KLs and 3886897 KLs independently. The reduction in Handbasket on Petrol and Diesel by Rs. 10 and Rs. 5 independently, will end in periodic loss ofRs. 1352 crores and Rs. 1943 crores on petrol and diesel independently. This is also to an estimated periodic loss of Rs684.68 Crores and Rs172.11 Crores of VAT profit for petrol and diesel independently, due to reduction of Excise Duty by GoI. 

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