Chandigarh | Jagran Business Desk: Chief Minister Charanjit Singh Channi-led Congress government in Punjab on Sunday decided to decrease petrol and diesel prices in the state by Rs 10 per litre and Rs 5 per litre respectively. The new prices will come in effect from midnight of Sunday. The announcement comes months ahead of the assembly polls in the state.

"We have decided to decrease petrol and diesel prices by Rs 10 per litre and Rs 5 per litre, respectively," said Chief Minister Charanjit Singh Channi.

"Petrol in Punjab has become cheapest in the region. As compared to Delhi, petrol in Punjab is now Rs 9 less," the state chief minister added.

This comes after the Center reduced the excise duty on petrol and diesel by Rs 10 and Rs 5 respectively. Announcing the reduction, the Ministry of Finance said, "Govt of India has made efforts to ensure that there is no energy shortage in the country and that commodities such as petrol & diesel are available adequately to meet our requirements."

"To give a further fillip to the economy, Govt of India has decided to significantly reduce excise duty on diesel & petrol. The reduction will also boost consumption & keep inflation low, thus helping the poor & middle classes," it said.

Following the Centre, state governments in Assam, Tripura, Manipur, Karnataka, Goa, Uttar Pradesh, Gujarat, Haryana, Himachal Pradesh, and Uttarakhand - which are ruled by the BJP - announced additional cuts on petrol and diesel prices.

Making petrol cheaper by Rs 12 a litre, Haryana had also announced a reduction in VAT on petrol and diesel. Apart from that, the Chandigarh administration also decided to reduce Rs 7 per litre on VAT on the fuels.

List of states that have reduced VAT:

Karnataka
Puducherry
Mizoram
Arunachal Pradesh
Manipur
Nagaland
Tripura
Assam
Sikkim
Bihar
Goa
Gujarat
Dadra & Nagar Haveli
Daman and Diu
Chandigarh
Haryana
Himachal Pradesh
Jammu & Kashmir
Uttarakhand
Uttar Pradesh
Odisha
Meghalaya
Ladakh
Punjab
Madhya Pradesh

List of states which have not yet reduced VAT:

Delhi
West Bengal
Kerala
Andhra Pradesh
Rajasthan
Chhattisgarh
Maharashtra
Jharkhand
Tamil Nadu

Posted By: Mallika Mehzabeen