Following BJP-ruled Gujarat and Maharashtra government’s move to reduce the value added tax (VAT) on petrol and diesel, Madhya Pradesh Chief Minister Shivraj Singh Chouhan also announced a similar move on 13 October.
Addressing the media, he said that the MP state government has reduced VAT by 5 percent on diesel and 3 percent on petrol.
He added that the new prices will come into effect from midnight.
The move comes after Union Finance Minister Arun Jaitley wrote to all state governments, asking them to reduce taxes on petrol and diesel.
Gujarat Slashes VAT on Fuel Before Election
In Gujarat, reduction in tax comes just before Diwali in the state, and the Assembly polls are due around the year-end.
With this rate cut, the price of petrol will come down by Rs 2.93 and that of diesel by Rs 2.72 in the state, he said.
The effective price of petrol in Gujarat from 10 October midnight will be Rs 66.53 per litre and that of diesel Rs 60.77 per litre, the chief minister added.
Because of this move, the state government will suffer a loss of Rs 2,316 crore annually. "But we have taken this decision in the interest of people," Rupani said in a press conference.
Maharashtra Slashes Prices
A few hours after Gujarat cut the prices, the Maharashtra Cabinet decided to slash prices of petrol and diesel by Rs 2 and Rs 1 respectively.
After the new rates came into effect, petrol costs Rs 75.58 per litre and diesel costs Rs 59.55 in the state.
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