Gujarat Chief Minister Vijay Rupani has announced a VAT cut down on Fuel by 4 per cent. He said that petrol prices are likely to come down by Rs 2.93 and diesel by Rs 2.72. Even the Maharashtra Cabinet has decided to slash prices of petrol and diesel by Rs 2 and Re 1 respectively, effective midnight.
The effective price of petrol in Gujarat from mid-night today will be Rs 66.53 per litre and that of diesel Rs 60.77 per litre.
While addressing media, Rupani said,''We are cutting down VAT on fuel by 4%; price of petrol to come down by Rs 2.93, diesel by Rs 2.72.''
Rupani's announcement came after the central government brought a reduction of Rs 2 on fuel rates.
Gujarat becomes the first state to cut VAT on fuel prices after Dharmendra Pradhan, Petroleum minister had written to chief ministers of all the states, requesting them to cut taxes.
Earlier, the government cut excise duty on petrol and diesel by Rs 2 per litre to moderate the relentless rise in fuel prices witnessed for the last three months.