Ahead of Assembly polls, Gujarat chief minister Vijay Rupani on Tuesday announced reduction in Value Added Tax (VAT) on petrol and diesel by 4 per cent.
While addressing a press conference, Rupani said: "After the central government's instructions, Gujarat has decided to reduce VAT on petrol and diesel by 4 per cent from today mid-night."
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, the chief minister said.
The effective price of petrol in Gujarat from mid-night today will be Rs 66.53 per litre and that of diesel Rs 60.77 per litre, the chief minister added.
We are cutting down VAT on fuel by 4%; price of petrol to come down by Rs 2.93, diesel by Rs 2.72: Gujarat CM Vijay Rupani pic.twitter.com/R7JSfjZXoe— ANI (@ANI) October 10, 2017
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. (With PTI Inputs)