Tribune News Service

Chandigarh, November 7

With the Centre slashing excise duty on petrol and diesel, the Punjab Government also announced a reduction in VAT on the fuels on Sunday, making them cheaper in the state by Rs 10 per litre and Rs 5 per litre, respectively.

The decision was taken at a Cabinet meeting chaired by Chief Minister Charanjit Singh Channi.

The new rates will be effective from midnight.

The Chief Minister made the announcement while addressing the media after the Cabinet meeting.  

The retail price of petrol in the state will be Rs 96.16 per litre and for diesel it will be Rs 84.80 a litre.

Finance Minister Manpreet Badal said the reduction in VAT on the fuels is estimated to cause a revenue loss of Rs 900 crore to the state.

Last week, the Centre had announced a cut in the excise duty on petrol and diesel by Rs 5 and Rs 10, respectively, bringing down their retail rates from record highs.

Reducing the excise duty, the Union Government had urged states to commensurately reduce VAT on petrol and diesel to give relief to consumers.