The Congress government in Punjab announced to cut the prices of petrol and diesel by Rs 10 and Rs 5 per litre, respectively with effective from Sunday midnight.
The Punjab government has taken the decision to slash the fuel prices after neighbouring Haryana and Himachal Pradesh.
The decision was taken in the State Cabinet chaired by Punjab chief minister Charanjit Singh Channi on Sunday.
After the Cabinet meeting, the Punjab chief minister shared the decision with the media persons.
Talking to media persons here after the State Cabinet meeting, chief minister Charanjit Singh Channi said with this decision, Punjab now has the lowest petrol rate in the region (except in Chandigarh), while diesel price in the state is also much lower than Haryana and Rajasthan.
The rate of VAT on petrol has been reduced from 27.27 % (24.79% plus 10% surcharge) to 15.15%, and on diesel from 17.57% (15.9% plus 10% surcharge) to 10.91%.
In order to provide relief to the people amid the festive season, the Centre recently announced to reduce the excise duty on petrol and diesel.
Following the footsteps of the central government, several states and Union territories have slashed the Value Added Tax (VAT) on petrol and diesel prices in India.
After the price cut, petrol price has come down under Rs 100-per-litre mark in most part of India.