A day after the Union Government reduced excise duty on fuel, several States lowered Value Added Tax (VAT) on petrol and diesel to give some respite to consumers. In a major relief to the people, the Narendra Modi government announced rate cuts a day ahead of Diwali. With this move, the central levy on petrol and diesel was cut by Rs 5 and Rs 10. This decision comes at a time when the Modi government is facing a lot of criticism and has crucial elections in the future.