Madhya Pradesh Chief Minister Shivraj Singh Chouhan on Friday announced a reduction of five per cent in the rate of Value Added Tax (VAT) on diesel and three per cent on petrol. He also announced to abolish additional surcharge of Rs 1.5 per litre on diesel. These rates would become effective from midnight of Friday. Following reduction in VAT rates, the price of diesel would be reduced from Rs 63.31 per litre to Rs 59.37 per litre. According to official sources, the decision to reduce the price of petrol and diesel was taken in the interest of the common people and peasants. Reduction in diesel prices would also reduce freight rates and reduce cost of other goods.