Bhopal: Chief Minister Shivraj Singh Chouhan on Thursday announced reduction in value added tax (VAT) on petrol and diesel within 24 hours of the Centre reducing the excise duty on petro-products. Thanking Prime Minister Narendra Modi for his decision to cut the excise duty by Rs 5 per litre on petrol and Rs 10 per litre on diesel Chouhan said: "We have decided to reduce the rate (VAT) to reduce prices of petrol and diesel further, which will be effective from Diwali day."

Later, the CM announced on Twitter, "We have decided to cut VAT on petrol and diesel by 4%. In addition, Rs 1.50 (per litre) will be reduced from the additional tax on diesel and Rs 2 (per litre) on petrol. Thus, in Bhopal diesel will be available approximately at Rs 90.95 per litre and petrol at Rs 106.86 per litre from November 5." According to president of MP Petroleum Dealers Association Ajay Singh, petrol price fell to Rs 112.54 per litre and diesel to Rs 96.95 after excise duty cut by the Centre. After VAT reduction the prices will fall further from November 5.

The State BJP welcomed the CM's announcement. Its state president VD Sharma said, "Your decision on the occasion of Deepawali to reduce petrol and diesel prices will give relief to people."