The decisions came after Finance Minister Arun Jaitley announced a Rs 2.50-a-litre cut in petrol and diesel prices
Gujarat and Maharashtra announced cuts in prices of petrol and diesel by Rs 2.5 per litre on October 4.
Following their lead, the state governments of Madhya Pradesh, Himachal Pradesh and Haryana have also announced an additional relief of Rs 2.5 per litre on petrol and diesel to give a total benefit of Rs 5 per litre.
Meanwhile, BJP supremo Amit Shah told the media,"Prime Minister Narendra Modi today gave another decision in public interest by reducing the central tax on petrol and diesel price by Rs. 2.50 per litre. All the BJP-ruled states have also decided to reduce VAT by Rs.2.50 per litre on petrol and diesel prices."
The decisions came after Finance Minister Arun Jaitley announced a Rs 2.50-a-litre cut in petrol and diesel prices, factoring in excise duty reduction of Rs 1.50 per litre and asking oil marketing companies to absorb another Re 1 per litre.
Jaitley further asked state governments to follow suit by cutting sales tax or value added tax (VAT) on petrol and diesel by a similar amount. Notably, central and state taxes and levies amount to more than the cost it takes to manufacture motor fuel.
Fuel prices have been consistently hitting record highs since mid-August. As on October 4, petrol prices stood at Rs 91.34 per litre in Mumbai.
In a tweet, Maharashtra Chief Minister Devendra Fadnavis thanked Prime Minister Narendra Modi and Jaitley for cutting petrol and diesel prices and said it will provide "huge relief" to the common man.In another tweet, Fadnavis announced that the state government will heed the government's request and cut the price of petrol by Rs 2.5 per litre, bringing the total benefit for end consumers to Rs 5 per litre in the state.
Maharashtra Government also decided to give additional relief of ₹2.5/litre on Petrol to give total benefit of ₹5/litre in the State of Maharashtra.
— Devendra Fadnavis (@Dev_Fadnavis) October 4, 2018
"Reciprocating positively to FM's announcement", Gujarat also decided to cut the tax on petrol and diesel.
In a tweet, Gujarat Chief Minister Vijay Rupani announced that "the government of Gujarat has decided to cut Rs 2.50 on both petrol and diesel. The cut makes petrol and diesel prices cheaper by Rs 5 in the state."
Karnataka and Kerala have said that they will not be cutting state-imposed taxes on petrol and diesel.
Finance Minister Sh @arunjaitley Ji has announced Rs.2.5 cuts in petrol & diesel prices, reciprocating positively to FM’s announcement, the Govt Of Gujarat has also decided to reduce Rs.2.50 on both petrol & diesel. Thus petrol & diesel wd be Rs. 5 cheaper in the State of Gujarat— Vijay Rupani (@vijayrupanibjp) October 4, 2018