AHMEDABAD: The Gujarat government has reduced the Value Added Tax (VAT) on petrol and diesel by Rs 7 per litre each, according to the Chief Minister's Office.
The decision was announced hours after the Centre cut excise duty on petrol and diesel on Wednesday, and the new price came into effect from midnight, the CMO said in a statement issued late at night.
"Chief Minister Bhupendra Patel has announced to reduce the prices of petrol and diesel in Gujarat by Rs 7 per litre," the statement said.
" Following Prime Minister Narendra Modi's decision to reduce the excise duty on petrol and diesel, the Gujarat government has also decided to reduce the VAT on petrol and diesel and implement this reduction in the entire state from midnight," it stated.
With this decision, petrol will now cost Rs 95.13 per litre and diesel Rs 89.12 per litre in Ahmedabad, while the two fuels will cost Rs 94.89 and Rs 88.89, respectively, in Surat.
Chief Minister Patel took to Twitter to thank PM Modi for the decision to slash the excise duty on petrol and diesel.
"The people of Gujarat thank Prime Minister Narendra Modi for his Diwali gift by taking a public-oriented decision to reduce the excise duty on petrol and diesel by Rs 5 and Rs 10 per litre, respectively," he said.
The Haryana government too announced a reduction in VAT on the fuels on Thursday, making them cheaper in the BJP-JJP-ruled state by Rs 12 per litre on Diwali.
Chief Minister Manohar Lal Khattar took to Twitter to announce the measure.
"On the occasion of Diwali, the central government has announced a reduction in prices of petrol and diesel. Taking it forward, the Haryana government has also reduced the rate of VAT on petrol and diesel in the state."
"Now, both petrol and diesel in entire Haryana will be cheaper by Rs 12 per litre," the chief minister said.
A day earlier, the BJP-ruled Uttar Pradesh government too lowered the VAT rate on the two fuels, making them cheaper by Rs 12 per litre in the state.
Some other BJP-ruled states have lowered their VAT rates as well.
On Wednesday, the Narendra Modi government announced a cut in the excise duty on petrol and diesel by Rs 5 and Rs 10 respectively, bringing down their retail rates from record highs.
Reducing the excise duty, the Union government urged states to commensurately reduce VAT on petrol and diesel to give relief to consumers.