Raipur: Chhattisgarh chief minister Bhupesh Baghel on Monday announced a 2% and 1% reduction in VAT on diesel and petrol prices respectively. The cabinet further mentioned that the government will incur a total loss of Rs 1000 crore. In a tweet, CMO Chhattisgarh announced the decision.

This announcement comes after the Central government reduced the excise duty on petrol and diesel prices by Rs. 5 and Rs10 respectively. Reportedly, minister T S Singh Deo had said that the state’s chief minister had asked him to explore the possibilities to reduce VAT so that the people of the state may avail the benefit of reduced prices. Earlier, chief minister Bhupesh Baghel had also mentioned that prices of petrol and diesel could be reduced to ₹60 if the central government withdrew the hiked excise duty on fuel.