Punjab inks MoU with IOC, secures higher diesel discount for state buses

The Punjab Transport department on Thursday signed an agreement with Indian Oil Corporation under which the state-owned undertaking buses would get diesel at an enhanced discounted rate. 

State transport minister Laljit Singh Bhullar said with this Memorandum of Understanding (MoU), the state government would save Rs 9 crore per annum. 

The MoU was formally exchanged between Rajiv Kumar Gupta, Director State Transport-cum-Managing Director of state-owned Punbus and Ashutosh Gupta, Executive Director and State Head of IOC. 

Bhullar said under this pact, the discount on diesel has been raised compared to the previous agreement. The IOC has offered a discount of Rs 2,550 per kilo litre (1,000 litres). 

"This is an increase of Rs 570 per kilo litre compared to the discount of Rs 1,980 per litre as per the previous agreement signed in 2019," Bhullar said. 

This would result in saving Rs 9 crore per annum for the Punjab Roadways. A similar MoU will be signed by the Punjab Road Transport Corporation (PRTC), which will result in an additional annual saving of Rs 9 crore, bringing the total annual savings to Rs 18 crore per annum. 

And, this saving will be Rs 90 crore in five years, he added. Bhullar said this decision reflects the state government's focus on fiscal responsibility and efficient utilisation of resources.