The state had made LPG totally free from the Value Added Tax (VAT) where as the taxes on petrol and diesel have been reduced by three per cent, state Finance Department officials said here today. 

The new prices are effective from today, said the officials. 

The prices of LPG cylinder have been reduced by Rs 13.61, a state government release said adding it was earlier priced at Rs 353.85, which would now cost Rs 340.24. 

Similarly petrol prices have been reduced by Rs 1.25 per litre after the reduction of VAT by three per cent, it said adding the previous price was Rs 52.14 which would now be sold at Rs 50.89. 

The new diesel price would be Rs 37.71 against the previous price of Rs 38.63 following a slash in the VAT on diesel by three per cent or Rs 0.92 per litre, the release said. 

This step will give relief to the people from the current inflation, the Chief Minister adding the decision would cost Rs 125 crore to the state exchequer.