Hyderabad/Bengaluru: While the Union government ruled out excise duty cuts in petrol and diesel prices, Rajasthan and Andhra Pradesh have reduced state taxes on fuel, and Karnataka and Maharashtra were considering to follow suit.

Rajasthan chief minister Vasundhara Raje on Sunday announced a 4% reduction in VAT on petrol and diesel, which will reduce prices by 2.5 per litre. Andhra Pradesh CM N. Chandrababu Naidu on Monday cut fuel prices by 2 on both petrol and diesel, effective 11 September. Karnataka CM H.D. Kumaraswamy said the state was considering options to reduce petroleum cess.