Punjab Hikes Fuel Prices, Cuts Power Subsidy to Boost Revenue

Punjab Hikes Fuel Prices, Cuts Power Subsidy to Boost Revenue

In a bid to boost state revenue, the Punjab government has announced a hike in fuel prices and a partial withdrawal of the power subsidy for domestic consumers. Petrol prices have been raised by 61 paise per litre, while diesel sees a steeper increase of 92 paise per litre. The new rates came into effect on Tuesday, affecting commuters and the transport sector.

Additionally, the state has decided to scale back its power subsidy scheme, which has been a lifeline for many households. The partial withdrawal will primarily impact domestic consumers, although specific details on the revised subsidy structure are yet to be fully disclosed.

The government claims these moves are necessary to tackle the growing fiscal deficit and ensure better resource management. However, the decision has sparked criticism from opposition parties and consumer rights groups, who argue that the fuel hike and reduction in subsidies will disproportionately affect the middle class and low-income households.

State officials insist that the measures are temporary and will be reassessed once the financial situation stabilizes. Meanwhile, the public remains concerned about the rising cost of living amid these new changes.