Chandigarh, November 7: Petrol-Diesel price slashed in Punjab.
CM Charanjit Singh Channi on Sunday announced to slash the prices of Petrol and Diesel by Rs. 10 and Rs. 5 per litre respectively from midnight today.
CM said that with this decision now Punjab has the lowest petrol rates in the region (except UT Chandigarh).
He added rates of Diesel in Punjab are also much lower than in Haryana and Rajasthan.
With this decision, the rate of VAT on Petrol has been reduced from 27.27% (24.79%+10% surcharge) to 15.15% (13.77%+10% surcharge)
whereas on Diesel from 17.57 % (15.93%+10% surcharge) to 10.91% (9.92%+10% surcharge).
CM said that it is really unfortunate on the part of its leadership to slash the prices of petrol and diesel by Rs.5 and Rs.10 per litre respectively.
Channi said cutting down the excise duty will adversely impact the income of all states including Punjab having 42% share in the excise duty collected by the Centre.
Citing the comparative 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:
The Chief Minister said that the new petrol rate in Punjab from tonight would be Rs.95/litre instead of earlier Rs.105/litre.
Likewise, the new diesel rate would be Rs.83.75/litre from tonight instead of Rs.88.75/litre as compared to Delhi.
CM said that his government has taken a decision of reducing VAT on Petrol & Diesel by Rs. 10 & Rs. 5 respectively from midnight of 7th-8th November.
Prices of petrol and diesel will thus come down accordingly.
As a result of this reduction, the rate of petrol in Punjab will be the lowest (except Chandigarh).
Petrol-Diesel price slashed in Punjab
The reduction in VAT on Petrol & Diesel will result in an annual loss of Rs. 1352 crores and Rs. 1943 crores on petrol and diesel respectively.
This is in addition to an estimated annual loss of Rs 684.68 Crores and Rs 172.11 Crores of VAT revenue for petrol and diesel respectively, owing to the reduction of Excise Duty by GoI.
