Jaipur: Rajasthan Chief Minister Vasundhara Raje on Sunday announced that the state will reduce Value Added Tax (VAT) on diesel and petrol prices by four per cent.

She said that while VAT on petrol was 30 per cent, it was 22 per cent on diesel, she said.

With the reduction, petrol and diesel prices will come down by an average Rs 2.50, Raje added.

She said that the state will bear a financial burden of Rs 2,000 crore due to VAT reduction.

Meanwhile, former Chief Minister Ashok Gehlot said that the Chief Minister was forced to reduce VAT under pressure. "Looking at the immense support to the bandh call given by Congress against the fuel hike, she had to reduce the price, he said.

Gehlot added that the decrease in petrol and diesel prices is insufficient and the state government should bring down the price of LPG cylinders too.

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