Punjab Govt Hikes VAT On Petrol, Diesel; Cancels Previous Govt's Power Subsidy Scheme

Punjab's Cabinet, led by Chief Minister Bhagwant Mann, on  Thursday approved an increase in petrol and diesel prices by 61 paise and 92 paise per liter, respectively. This decision marks a significant shift in the state's economic policy. The Cabinet also announced the cancellation of a power subsidy scheme introduced by the previous Congress government, which provided discounted electricity rates to households with up to a 7 KW load.

Chief Minister Bhagwant Mann convened the cabinet meeting to address the state's current economic challenges. In light of recent financial constraints, including the central government's suspension of over Rs 10,000 crore in funds to Punjab, the state government is implementing measures to bolster its economic health.

The cancellation of the power subsidy scheme, along with the fuel price hike, reflects the government's strategy to navigate through the financial difficulties exacerbated by the central funding cut.