After the Central government reduced the excise duty on petrol and diesel, NCP chief Sharad Pawar on Friday demanded the release of GST compensation to the states so that state governments can reduce value-added tax (VAT) on fuel.

Speaking to reporters here today, Pawar said, "If the Centre disburses the GST compensation to all the states, then it is possible for the state governments to reduce the VAT on petrol and diesel and implement other welfare schemes." Pawar's remarks came after the Finance Ministry on Wednesday announced a Rs 5 per litre cut in excise duty on petrol and a Rs 10 per litre cut in excise duty on diesel.