Chandigarh, Mar 13: The Punjab government has signed a five-year Memorandum of Understanding (MoU) with Indian Oil Corporation (IOC) to supply diesel for Punjab Roadways and PUNBUS buses, aiming to save ₹90 crore.
Transport Minister Laljit Singh Bhullar, present at the signing ceremony at Punjab Bhawan, said the agreement offers a discounted diesel price of ₹2,550 per kilolitre—₹570 lower than the 2019 deal, which provided a ₹1,980 per kilolitre discount.
“This move will save Punjab Roadways ₹9 crore annually. A similar MoU with Punjab Road Transport Corporation (PRTC) is expected to add another ₹9 crore in yearly savings, taking the total to ₹18 crore per year,” Bhullar stated.
The MoU was formally exchanged between Rajiv Kumar Gupta, Director State Transport-cum-MD of PUNBUS, and Ashutosh Gupta, Executive Director and State Head of IOC, in the presence of Bhullar.
“Our government is focused on fiscal responsibility while ensuring safe and comfortable public transport,” Bhullar mentioned, adding that the deal aligns with Chief Minister Bhagwant Singh Mann’s commitment to cost efficiency.
Additional Chief Secretary (Transport) D.K. Tiwari said the agreement followed extensive negotiations and would significantly reduce fuel expenses over the next five years.