The Chhattisgarh government on Monday said it will reduce value added tax, or VAT, on diesel by 2% and on petrol by 1%. Chief Minister Bhupesh Baghel said that the government will incur losses of Rs 1,000 crore annually due to the decision.
With fuel prices reaching record high levels, the Centre had slashed excise duty on petrol by Rs 5 and on diesel by Rs 10 per litre earlier this month. The new prices came to effect on November 4.
Several states had followed suit and further reduced their value added tax on fuel. Assam, Goa, Tripura, Manipur, Karnataka and Gujarat have reduced the value added tax on both petrol and diesel by Rs 7.
The Uttarakhand government has also reduced petrol prices in the state by Rs 7 per litre. Uttar Pradesh has slashed prices of petrol and diesel by Rs 12 per litre.
The Bihar government has reduced prices of petrol and diesel by Rs 3.20 per litre and Rs 3.90 a litre, respectively. In Sikkim, both the fuel products have been made cheaper by Rs 7 per litre.
Rajasthan has cut value added tax on petrol by Rs 4 and diesel by Rs 5.
Meanwhile, on Monday the fuel prices remained unchanged for the 18th straight day, NDTV reported. The price of petrol in Delhi was Rs 103.97 per litre and that of diesel was Rs 86.67 per litre.
Petrol cost Rs 109.98 in Mumbai and diesel Rs 94.14 per litre on Monday. In Kolkata, petrol was being sold at Rs 104.67 per litre and diesel at Rs 89.79 per litre. In Chennai, petrol costs Rs 101.40 and diesel Rs 91.43 a litre.
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