Ahead of the Bharat Bandh called by the Congress to protest against the unchecked rise in fuel prices, the Rajasthan government announced slashing of VAT on fuel prices by 4 per cent. With the latest move, prices of petrol and diesel in the poll-bound state will come down by Rs 2.5 a litre from today.
Petrol price is Rs 83.26 a litre in Jaipur while diesel is priced at Rs 77.17 a litre. The new prices of VAT on petrol will be reduced from 30 to 26 per cent and on diesel from 22 to 18 per cent, Chief Minister Vasundhara Raje made the announcement at a public meeting organised in Rawatsar in Hanumangarh district as part of her ‘Rajasthan Gaurav Yatra’.
The decision is likely to cost the exchequer an amount Rs 2,000 crore. “We have decided to reduce VAT on diesel and petrol by four per cent, which will provide much-needed relief to the people of the state, be it farmers or women or others,” she added. The announcement comes at a crucial time when the state is gearing up for the upcoming assembly elections and the ruling party is facing strong anti-incumbancy.