No decision on fuel price reduction in Punjab; Chandigarh reduces VAT by Rs 1.50 per litre

Chandigarh, October 5

The Punjab Government on Friday deferred its decision on reduction of fuel prices, an official spokesman said here. Meanwhile, the Chandigarh Administration has reduced the VAT on petrol and diesel with effect from midnight of October 5 and 6 by Rs 1.50 per litre.

Thus the total benefit to the consumer is of Rs 4 per litre on petrol and diesel.

"No decision on reduction of fuel prices in Punjab yet...Chief Minister Capt Amarinder Singh directs finance and excise/taxation departments to make a detailed comparative analysis of fuel prices in Punjab vis-a-vis other states," the spokesman said.

The chief minister has reconvened a meeting with state government officials in the national capital on Monday on the issue, he said.

 The Friday's meeting with officials from excise, taxation and finance department was to assess the implications and impact of the centre's suggestion to states on reduction of fuel prices, but it has been deferred till Monday. 

Any decision on revising fuel prices will be taken after the meeting on Monday, officials said.

Amarinder also spoke to Punjab Finance Minister Manpreet Singh Badal on Thursday and asked him to make a presentation on the fuel price issue, officials said.

The BJP-led governments in many states including Haryana Thursday announced a Rs 2.50 per litre cut in petrol and diesel prices.

The price cut announcements of states came Thursday after the Centre slashed fuel prices by Rs 2.50 a litre.

The Centre cut petrol and diesel prices by Rs 2.50 per litre, factoring in excise duty reduction of Rs 1.50 per litre and asking oil companies to absorb Re 1 a litre price.

Finance Minister Arun Jaitley had also asked the state governments to follow suit by cutting the sales tax or Value Added Tax (VAT) by a similar amount.

The reduction followed petrol and diesel prices touching new highs. PTI