Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
1-min read

MP Govt Reduces VAT on Petrol by 3% and Diesel by 5%

The state government also withdrew the additional cess of Rs 1.50 per litre on diesel.


Updated:October 13, 2017, 2:45 PM IST
MP Govt Reduces VAT on Petrol by 3% and Diesel by 5%
Representative Image

Bhopal: The Madhya Pradesh government on Friday reduced the value-added tax (VAT) on petrol and diesel by 3 and 5 percent, respectively.

The state government also withdrew the additional cess of Rs 1.50 per litre on diesel.

Notably, the BJP-ruled Gujarat and Maharashtra states had also earlier this week reduced the VAT on these fuels.

"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 Moreover, the additional cess of Rs 1.50 per litre has also been withdrawn," state Finance Minister Jayant Malaiya announced after a meeting with Chief Minister Shivraj Singh Chouhan.

The revised rates will be applicable from midnight on Friday, he said.

"Now, the VAT on petrol has been reduced to 28 percent from 31 per cent and on diesel to 22 percent from 27 per cent," the minister said.

Following the rate cut, the petrol will be cheaper by about Rs 1.70 per litre and diesel by about Rs 4 per litre in the state, Malaiya said.

The decision would cause a revenue loss of about Rs 1,000 crore to the state exchequer in the remaining six months of the current fiscal, he said.

The chief minister said the decision to cut the VAT was taken in the interest of the public.

"The decision to cut the prices was taken to provide relief to the common man, besides keeping the needs of farmers in mind. The diesel price cut would also reduce the freight rates which would further bring down the prices of commodities," Chouhan said.

However, state Congress spokesman Pankaj Chaturvedi said the government's move to cut the prices was just an "eyewash".

"Going by the crude oil prices in global market, the petrol price should be less than Rs 50 per litre. This reduction hardly means anything. The fuel prices should be drastically slashed," Chaturvedi said.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months. Use code FREEDOM.

| Edited by: Ananya Chakraborty
Read full article
Next Story
Next Story

Also Watch


Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results