The price of petrol will come down now by ₹ 2.93 and that of diesel by ₹ 2.72 in the State.
The Gujarat government has decided to reduce the value added tax (VAT) on petrol and diesel by 4 per cent, Chief Minister Vijay Rupani said on Tuesday.
The step comes just before Diwali and ahead of Assembly polls by year-end.
“After the Central government’s instructions, Gujarat has decided to reduce VAT on petrol and diesel by 4 per cent from today midnight,” Mr. Rupani said at a press meet in Gandhinagar.
With this rate cut, the price of petrol would come down by ₹ 2.93 and that of diesel by ₹ 2.72. The effective price of petrol in Gujarat from midnight of October 10 will be 66.53 a litre and that of diesel 60.77, he said.
The decision would result in the government suffering a loss Rs. 2,316 crore annually. “But we have taken this decision in the interest of people,” Mr. Rupani said.
Union Finance Minister Arun Jaitley recently wrot to all State governments nudging them to reduce taxes on petrol and diesel.
The Centre had recently brought down excise duty on petrol and diesel by Rs. 2 a litre.