Ask your state government on fuel rate: Nirmala Sitharaman

New Delhi : Finance Minister Nirmala Sitharaman suggested people to raise question to their state government on why they have not reduced VAT on petrol yet.

"Petrol and Diesel can't be included in Goods and Services Tax (GST) till the GST Council sets the rate for their inclusion," the Finance Minister added.

She addressed a press after holding meeting with the Chief Ministers and Finance Ministers of all the states with a view to enhance investment friendly climate for 'strong recovery'.

Recently, Centre had reduced the excise duty on petrol and diesel by Rs 5 and Rs 10 per litre respectively on Diwali eve. Post this states had also reduced VAT on the fuel.

Meanwhile, some states have argued that Modi government has reduced fuel prices marginally while they had increased them significantly in the past. They claim that state governments did not increase VAT so there's no question of reducing it and that prices will automatically go down if the Centre reverses its excise duty hikes.