The Rajasthan government on Sunday announced it will cut value added tax on petrol and diesel by 4% starting at midnight, ANI reported. Chief Minister Vasundhara Raje made the announcement at a public rally in Hanumangarh.
The tax cut will bring down fuel prices by around Rs 2-Rs 2.5 a litre. Petrol currently costs Rs 82.99 a litre in Rajasthan, Financial Express reported.
The decision will cost the exchequer around Rs 20 billion, according to PTI. The state is scheduled to hold Assembly elections later in the year.
This comes after the Congress and other parties called for a nationwide shutdown on Monday to protest the rising prices of fuel. Petrol and diesel prices continued to climb on Sunday, along with a rise in global crude oil prices.