Leader of Opposition Ajay Singh said the tax cut on fuel prices is only a "deception" as even after the reduction, Madhya Pradesh will still remain the state to pay the highest for petrol and diesel.
Later in the evening Himachal Pradesh, ruled by Congress, announced a 1% reduction in Value-Added Tax.
States this week reduced Value-Added Tax in response to the Centre's decision to cut excise duty on petrol and diesel last week. Shivraj said the farmers will get benefitted from the new prices as they use diesel in various farming purposes.
Maharashtra finance minister Sudhir Mungantiwar said on Tuesday that states are in principle on board with the idea of bringing petroleum products under GST although a decision has to be taken by the GST Council. The announcement has come after Maharashtra and Gujarat also reduced the prices of petrol and diesel.
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On October 5, Petroleum Minister Dharmendra Pradhan, then, asked states to follow the Centre's footsteps in cutting taxes on petrol and diesel.
The revised rates will be applicable from Friday midnight, he said. An additional Rs 1.50 has been reduced in the cess on diesel.
The move is expected to cause a revenue loss of an estimated Rs 2,000 crore per annum to the state exchequer, official sources said. Consumer price index-based inflation accelerated for the second consecutive month by 3.36% in August from 2.36% in July. In Bhopal, petrol will now cost Rs 73.13 per litre against the earlier price Rs 74.79 per litre.