Bihar government cuts petrol price by Rs 2.52/litre, diesel by Rs 2.55

The Bihar government Friday lowered the value added tax (VAT) on petrol and diesel which would make these fuels cheaper by Rs 2.52 and Rs 2.55 a litre, Respectively.

According to an official release, VAT on petrol has been reduced from 26 per cent to 22.20 per cent, while on diesel, it will be 15 per cent as against the earlier rate of 19 per cent.

The announcement came barely a few hours after Chief Minister Nitish Kumar had hinted that the state government was looking forward to reducing taxes on petroleum products, following the Centre's decision to slash excise duty on the same a day earlier.

On being asked about the fuel price cut issue on the sidelines of a function, Kumar had said "a decision will be taken later in the day (on reducing petrol and diesel prices)".

The Bihar government's move follows the Centre's decision to cut petrol and diesel prices by Rs 2.50 per litre. Subsequently, on the Centre's direction, nearly all-BJP ruled states reduced prices of the fuels by Rs 2.50 a litre.

Incidentally, the BJP is also an alliance partner in the ruling coalition in Bihar.