Congress-ruled Punjab has given a hefty additional discount on petrol and diesel days after the Centre's move to cut fuel prices on the eve of Diwali. Petrol prices will be slashed by another Rs 10 and diesel by Rs 5 in Punjab. This "hasn't happened in 70 years," said Chief Minister Charanjit Singh Channi, announcing the cut months before the state assembly elections due early next year.
"Petrol in Punjab has become cheapest in the region. As compared to Delhi, petrol in Punjab is now Rs 9 less," the Chief Minister said.
Petrol in Punjab will now cost Rs 95 per litre and diesel Rs 83.75 a litre -- but Chandigarh will still be cheaper with petrol at Rs 94.21 and diesel at Rs 80.89. Prices are higher in Delhi, Uttar Pradesh, Haryana, Rajasthan and Jammu and Kashmir.
The Centre had reduced excise duty on petrol and diesel by Rs 5 and Rs 10 on the eve of Diwali in a move that's expected to further boost the BJP's approval rating ahead of the next round of elections in five states.
Ten BJP-ruled states - Assam, Tripura, Manipur, Karnataka, Goa, Uttar Pradesh, Gujarat, Haryana, Himachal Pradesh and Uttarakhand – followed suit, announcing additional cuts in petrol and diesel prices.
Of these states, assembly polls are due in Uttar Pradesh, Uttarakhand, Goa and Manipur.
Punjab's neighbor Haryana had announced a reduction in Value Added Tax on petrol and diesel, making each cheaper by Rs 12 a litre. The Chandigarh Administration has also announced a reduction of Rs 7 per litre on VAT on the fuels.
Of the two other Congress-ruled states, Rajasthan Chief Minister Ashok Gehlot declined further price cuts in the state, arguing that with the Centre's November 4 decision, the state's VAT has also automatically been reduced by Rs 1.8 per litre on petrol and Rs 2.6 per litre on diesel. This, he said, will cause an annual loss of Rs 1,800 crore in the state's revenue.
"In view of the inflation, the Central government should make further reduction due to which the VAT collection of the states will automatically reduce in the same proportion," he tweeted.
Chhattisgarh Chief Minister Bhupesh Baghel demanded that the taxes on petrol and diesel be brought down on par with that of the erstwhile UPA government, when the excise duty on petrol was Rs 9.27 per litre.
"They had earlier hiked the price by Rs 30, and now reduced it by just Rs 5 and are trying to get appreciation for that," Mr Baghel said.
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