The Punjab government on Tuesday issued an ordinance to slash petrol and diesel prices within the municipal limits of the various cities across the state.
The order was issued after the government took a nod from Punjab governor Shivraj V Patil. With the ordinance coming into force after Tuesday midnight, the petrol and diesel prices would come down by 72 paise and 82 paise per litre respectively.
Petrol would now be available within the municipal limits of Punjab at Rs 72.47 per litre, while diesel would cost Rs 39.79 per litre.
The decision to abolish octroi on petrol and diesel was taken by the government in a cabinet meeting last week.
Financial experts say the government would have to bear an additional burden of Rs 100 crore with the abolition of octroi on petrol and diesel.
With the latest slash, the fuel prices would be cheaper in Punjab as compared to Haryana after a long time.
In Chandigarh petrol is priced at Rs 66.47 per litre making it Rs 6 cheaper than Punjab, while the diesel is priced at Rs 41.85 per litre.