In a Diwali bonanza for the common man, prices of petrol and diesel across the country came down in Thursday after the Centre and states announced heavy cuts in taxes.

etrol, diesel rices had soared to record high in the past couple of months.

The total increase in petrol price since the May 5, 2020 decision of the government to raise excise duty to record levels had totaled Rs 38.78 per litre. Diesel rates have during this period gone up by Rs 29.03 per litre.

After the introduction of the Goods and Service Tax (GST) regime, excise duty is levied only on petrol, diesel, ATF and natural gases. All other goods and services are under the GST regime.

Following Centre's plea, over half-a-dozen BJP-led states were quick to announce reduction in VAT rates.

Certain opposition-led state also followed suit and slashed VAT rate on petrol and diesel`.

However, VAT rates differ from state to state, leading to differential rates of fuel.     

(With inputs from agencies)