Puducherry LG announces 2% reduction in VAT on petrol, diesel

(Representative Image)

Puducherry Lt Governor Tamilisai Soundararaja announced a 2 percent reduction in Value Added Tax (VAT) on petrol and diesel in the union territory, reported ANI.

The governor's announcement on February 26 comes in the face of Assembly elections, which will happen in a single phase on April 6. The counting for the same will take place on May 2, along with the vote counting of the other 4 states that are going into election as well - West Bengal, Kerala, Tamil Nadu and Assam.

Earlier today, Union Oil Minsiter Dharmendra Pradhan had said that the raging fuel prices will come down as the winter ends.

"Prices will come down a little as winter goes away. It's an international matter, price is high due to increase in demand, it happens in winter. The price will come down," he said, as quoted by ANI.

The finance minister has, however, given no solid hope on when the prices of petrol and diesel can be reduced. Speaking at an event in Ahmedabad, FM Nirmala Sitharaman said that she won't be able to tell when. It's a moral dilemma or 'dharam sankat', according to her.

Petrol and diesel prices have been surging in the past few weeks, in some cities crossing the Rs 100/litre mark as well. As of February 26, the price of petrol is Rs 90.93/litre and diesel is Rs 81.31 per litre, in Delhi. In Mumbai, petrol was selling at Rs 97.34/litre and diesel at Rs 88.44 per litre.