The administration announced that the value added tax (VAT) on diesel or high speed diesel will be reduced from 16.40 per cent to 11.40 per cent.
Echoing views expressed by Dharmendra Pradhan, Union Minister of Petroleum and Natural Gas earlier, Reddy said state governments should reduce their VAT on the fossil fuel.
"The Madhya Pradesh government has decided to reduce VAT on petrol by 3 per cent. The VAT on diesel is reduced by 5 per cent. Moreover, the additional cess of Rs 1.50 per litre has also been withdrawn," state Finance Minister Jayant Malaiya announced after a meeting with Chief Minister Shivraj Singh Chouhan.
It is unlikely that the government would want to tinker with the GST structure and introduce any slab higher than 28 percent. But if it decides to bring it under GST, it will be at a huge cost.
The petrol pumps across the state will remain closed on October 13 as a part of the strike call give by United Petroleum Front.
Earlier in the day, Gujarat became the first state to announce a reduction it VAT on diesel and petrol. In a move seen as an attempt to lure voters in the poll-bound state, the Vijay Rupani dispensation announced a 4% reduction in VAT.
Move follows the Centre decision to bring down down excise duty on petrol and diesel by Rs 2 per litre
Speaking at the India Economic Summit of the WEF, he said the sector if given benefits in terms of taxation and cost, there is no reason why India will not emerge as the fastest growing aviation market in the world in the next decade.
The government this week cut excise duty by Rs 2 per litre as part of efforts to reduce the prices of petrol and diesel. Petrol in Delhi now costs Rs 68.38 a litre, down from Rs 70.88. A litre of diesel now comes for Rs 56.89 as against Rs 59.14 previously.
With the introduction of these three new models, Audi India has achieved the target of launching 10 products in the current calender year, Audi India head Rahil Ansari said.
The relief to the consumers comes at the expense of government finances that are already struggling
"While this decision will benefit vehicle owners and common man, it is like 'oont ke muh me jeera'. First they raised the prices exponentially and then reduced for namesake when there was commotion everywhere," the Sena said in an editorial in party mouthpiece 'Dopahar ka Saamana'.
The government yesterday cut excise duty on petrol and diesel by Rs 2 per litre each to moderate the relentless rise in fuel prices witnessed for the last three months. "Excise duty cuts by the government are most welcome. Will spur demand, economic activity and employment," Kumar said in a tweet.
"By taking cognizance of the whole scenario, the prime minister has given direction to the finance ministry and the oil ministry to look into this aspect and rightly, I don't see this as an issue of loss or gain," Pradhan told reporters.
The government had yesterday cut excise duty on petrol and diesel by Rs 2 per litre each to moderate the relentless rise in fuel prices witnessed for the last three months.
Petrol in Delhi now costs Rs 68.38 a litre, down from Rs 70.88. A litre of diesel now comes for Rs 56.89 as against Rs 59.14 previously, according to Indian Oil Corp (IOC), the nation's largest fuel retailer.
According to the global financial services major, this decision further adds to the risk that the government will likely miss its fiscal deficit target for this fiscal.
"With the Tiago Wizz limited edition, we want to celebrate the success of Tiago and begin the festive season with something special for our current and potential customers," Mayank Pareek, President Passenger Vehicle Business Unit, Tata Motors, said in a statement.
Consumption of fuel, a proxy for oil demand, totalled 15.75 million tonnes in August, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed on Tuesday.
The government, under GST, charges 28 percent on small cars. Another 15 percent is charged as cess on large cars.
Pradhan, who was yesterday elevated as Cabinet minister and given additional charge of Ministry of Skill Development and Entrepreneurship, said the daily revision immediately passes on the benefit of any reduction in international oil prices to consumers and avoids sharp spikes by spreading them in small doses.
With the launch of the Q7 40 TFSI, Audi’s flagship SUV is now available in both petrol and diesel engine options. The top of the line Technology Pack is priced at Rs 74.43 lakh.
State-owned oil companies in June dumped the 15-year old practice of revising rates on 1st and 16th of every month and instead adopted a dynamic daily price revision to instantly reflect changes in cost. Rates during the first fortnight dropped but have since July 3 been on the rise.
Diesel price has increased by Rs 3.67 a litre and now costs Rs 57.03 a litre in Delhi, the highest in four months, according to data from state-owned oil companies.
The diesel smart hybrid trim of the 'Ciaz S' version, which comes with all new premium black interiors with grey chrome finishing, is priced at Rs 11.55 lakh.