The vehicle fuel rate in the state will be reduced in the state by Rs 7 from Thursday evening. The price of petrol will be Rs 95.50 and diesel Rs 81.50 per liter in the state. The state exchequer would be burdened Rs 2100 crore with the reduce of the price.

The Centre on Wednesday slashed excise duties on petrol by Rs 5 a litre and on diesel by Rs 10 a litre on the eve of Diwali in an attempt to give relief to the common man reeling under the impact of boiling auto fuel prices.

Taking a cue from the Union government, several states such as Karnataka, Assam, Gujarat, Goa, Uttarakhand among others have cut petrol and diesel prices in their respective areas by bringing down the value-added tax (VAT) attached to the auto fuel prices.