Petroleum minister Dharmendra Pradhan has requested chief ministers of all the states to cut VAT, which has gone up significantly in the last three months.
The states, now charge anywhere between 25 to 49 per cent VAT on diesel and petrol.
If states slash VAT (on fuel) by 5%, consumers will get more relief. We urge states to take responsibility just like the centre did, in direction of consumer interest, said Pradhan.
Finance Minister will be writing to all the states regarding slashing VAT levied on fuel, he added.
Ever since the implementation of Goods and Services Tax, several states have increased the value-added tax, leading fuel prices to rise significantly.
On Tuesday, after facing all-round criticism on fuel prices, the government slashed the excise duty on petrol and diesel by Rs 2 per litre. The new prices were effective from Wednesday.