The Punjab government Monday announced its decision to abolish octroi on petrol and diesel in the state. This will lower prices of the fuel by up to Rs.2.

A state government spokesman said that the decision was taken in a meeting of the Punjab cabinet, headed by Chief Minister Parkash Singh Badal, here.

The abolition of octroi will reduce prices of petrol and diesel by Rs.1-2 per litre, officials said here.

The spokesman said that the state government had already abolished octroi on all items except electricity, petrol and diesel with effect from Sep 1, 2006.

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