Bhubaneswar: As announced by the state government on Thursday, the reduced prices of petrol and diesel will come into effect from Friday midnight.
In a relief from the rising fuel prices, chief minister Naveen Patnaik on Thursday announced reduction of VAT of Rs 3 each on petrol and diesel effective from November 5.
After cut in the VAT, petrol price in the capital city will come down to Rs 101.88 per litre from Friday’s Rs 104.88. Similarly, diesel, which was sold at Rs 94.50 on the day, will cost Rs 91.50.
This state government’s VAT cut is over and above the reduction in excise duty announced by the Centre. With this, the state will lose revenue from VAT to the tune of Rs 1400 crore per annum. This is in addition to loss in VAT collection of Rs 1.6 per litre on petrol and Rs 2.8 on diesel.
The total loss to state exchequer on account of reduction in VAT is estimated to be Rs 2000 crore per annum.
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