Rajasthan Chief Minister Vasundhara Raje has announced that the government has decided to provide a 4 per cent reduction in value-added tax (VAT) on petrol and diesel in the State.

Following the decision, petrol and diesel prices in the State will be slashed by Rs 2.50 per litre.

VAT on petrol will be reduced from 30 to 26 per cent and from 22 to 18 per cent on diesel. The decision will cost the exchequer Rs 2,000 crore.

The CM made the announcement at a public meeting organised in Rawatsar in Hanumangarh district on Sunday as part of her Rajasthan Gaurav Yatra.