Jaipur: Rajasthan chief minister Vasundhara Raje today announced a 4 percentage point reduction in value added tax (VAT) on petrol and diesel, which will reduce their prices by 2.5 per litre in the state. VAT on petrol will be reduced from 30% to 26% and on diesel from 22% to 18%, Raje said at a public meeting in Rawatsar, Hanumangarh, as part of her Rajasthan Gaurav Yatra.

The decision will cost the state exchequer 2,000 crore and will provide the people a relief of 2.5 per litre on petrol and diesel.

“We have decided to reduce VAT on diesel and petrol by 4%, which will provide much-needed relief to the people of the state, be it farmers or women or others," Raje told reporters in Rawatsar after making the announcement.

Petrol and diesel prices set new records today as they continued their upward march on fall in rupee and surge in global crude oil rates. The opposition Congress has called for a nationwide shutdown on Monday over rising fuel prices and depreciation of the rupee.

Targeting the Congress, Raje said that the party had failed to play the role of an effective opposition and has come out of its shell just before the election. Rajasthan polls are scheduled for later this year.

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