Madhya Pradesh cuts VAT on petrol, diesel

After Gujarat and Maharashtra, Madhya Pradesh became the third state to slash VAT on prices of petrol by 3% and diesel by 5% respectively, effective from midnight.

Madhya Pradesh CM Shivraj Singh Chouhan on Friday said,''Have reduced 5% VAT on diesel & 3% on petrol, new prices will come into effect from midnight.''

Gujarat becomes the first state to cut VAT on fuel prices after Dharmendra Pradhan, Petroleum minister had written to chief ministers of all the states, requesting them to cut taxes. Earlier, the government cut excise duty on petrol and diesel by Rs 2 per litre to moderate the relentless rise in fuel prices witnessed for the last three months.