BJP-ruled states follow Modi govt, announce additional cuts in fuel taxes

In a major relief to citizens, the Narendra Modi government on Wednesday slashed the excise duty on petrol and diesel by Rs 5 and Rs 10, respectively.

The Central government also called on states to cut their value-added tax (VAT) rates on the two fuels to give more relief to citizens.

And BJP-ruled states have heeded the Modi government's advice. From Wednesday night, a number of states ruled by the saffron party and its allies have announced cuts to VAT rates. Assam, Gujarat, Tripura, Manipur, Karnataka and Goa announced that the VAT on both petrol and diesel would reduce by Rs 7. The cuts would make petrol cheaper by Rs 12 per litre and diesel by Rs 17 per litre in these states.

Goa Chief Minister Pramod Sawant tweeted that the reduction in fuel prices was a "great Diwali gift" given to the people by the Modi government.

Karnataka Chief Minister Basavaraj Bommai said petrol will now cost approximately Rs 95.90 a litre and diesel Rs 81.5 in Karnataka. He noted the VAT cut would mean a loss of Rs 2,100 crore for the exchequer.

Uttarakhand Chief Minister Pushkar Singh Dhami announced on Wednesday the VAT on petrol would be reduced by Rs 2.

Himachal Pradesh Chief Minister Jai Ram Thakur promised that his government would reduce the VAT soon, but did not specify the details of the proposed reduction.

Uttar Pradesh additional chief secretary (information) Navneet Sehgal informed that the state government would reduce the VAT by Rs 7 and Rs 2, respectively, on petrol and diesel.

Madhya Pradesh Chief Minister Shivraj Singh Chouhan tweeted on Thursday his government would further reduce the prices of diesel and petrol.

Sikkim, which is ruled by an NDA ally, has also announced a cut in VAT on petrol and diesel by Rs 7.