Punjab Transport Department and IOC Sign Agreement for Enhanced Diesel Discounts for State Buses

The Punjab Transport Department has entered into an agreement with Indian Oil Corporation to secure diesel for state-owned buses at a better discounted rate. According to State Transport Minister Laljit Singh Bhullar, this Memorandum of Understanding (MoU) will enable the state to save Rs 9 crore annually.

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Enhanced Diesel Discount

The MoU was exchanged between Rajiv Kumar Gupta, Director State Transport-cum-Managing Director of Punbus, and Ashutosh Gupta, Executive Director and State Head of IOC. Bhullar highlighted that the new agreement offers a higher discount on diesel compared to the previous one. The discount now stands at Rs 2,550 per kilo litre (1,000 litres), up by Rs 570 from the earlier Rs 1,980 per kilo litre agreed upon in 2019.

Significant Financial Savings

This enhanced discount is expected to save Punjab Roadways Rs 9 crore each year. Additionally, a similar agreement will be signed by the Punjab Road Transport Corporation (PRTC), which will also save Rs 9 crore annually. Together, these agreements are projected to save the state a total of Rs 18 crore every year.

Over a period of five years, these savings are anticipated to accumulate to Rs 90 crore. Bhullar emphasised that this decision underscores the state government's commitment to fiscal responsibility and efficient resource management.

By securing these discounts, the Punjab government aims to optimise its financial resources while ensuring the smooth operation of its transport services.