Punjab Budget: Govt cuts petrol rate by Rs 5, diesel by Re 1

Chandigarh, February

The Punjab government on Monday decided to reduce petrol prices by Rs 5 per litre and diesel by Re 1 from midnight.

This is after the state revised the VAT rationalisation announced in the Budget.
The Budget promised to rationalise the VAT rates on petroleum products in line with neighbouring states. This parity in VAT rates will bring relief to consumers.

Punjab imposes second highest tax on petrol after Maharashtra.

The difference between petrol and diesel price in Chandigarh and Punjab is around Rs 9 per litre and over Rs 2 per litre, respectively.

The fuel pump owners had pitched for uniformity in taxes on petroleum products in the northern region.

Earlier, the government had deferred its decision on reduction of fuel prices.