The Andhra Pradesh government has announced a 2 rupees cut in VAT on petrol and diesel to check the mounting prices of the fuels.
He said the state government was currently levying 4 rupees per litre VAT on petrol and diesel.
Mr Naidu said, the state would have to forego a revenue of 1,120 crore rupees due to the measure.
A day before the opposition-sponsored Bharat Bandh
against rising fuel prices, Rajasthan had slashed the VAT on petrol and diesel.
Chief Minister Vasundhara Raje yesterday announced a 4 per cent reduction which brought the prices of the two commodities down by 2.5 rupees per litre.