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Petrol, diesel get cheaper in Gujarat as VAT cut by 4% before Diwali, polls

Gujarat govt will suffer a loss of Rs 2,316 crore annually; move follows Centre's decision that reduced excise duty on fuel by Rs 2 per litre

Press Trust of India  |  Gandhinagar 

Photo: Shutterstock
Photo: Shutterstock

The has decided to reduce the value added (VAT) on and by 4 per cent, state Chief Minister said on Tuesday.

The reduction in comes just before in the state, where the Assembly polls are due around the year-end.

"After the central government's instructions, has decided to reduce on and by 4 per cent from today mid-night," Rupani said at a press meet here.

With this rate cut, the price of will come down by Rs 2.93 and that of by Rs 2.72 in the state, he said.

The effective price of in from mid-night today will be Rs 66.53 per litre and that of Rs 60.77 per litre, the chief minister added.

Because of this move, the state will suffer a loss of Rs 2,316 crore annually.

"But we have taken this decision in the interest of people," Rupani said.

The lowering of in the poll-bound follows Union Minister recently writing to all state governments nudging them to reduce taxes on and

The had recently brought down excise duty on and by Rs 2 per litre.

First Published: Tue, October 10 2017. 11:14 IST