Even though the state government announced a reduction in value added tax (VAT) on diesel and kerosene and the Pune Municipal Corporation announced reduction in octroi on petrol and diesel, petrol pumps in the city continued to sell the fuel at earlier prices on Thursday.

The Petrol Dealers Association (PDA) has stated that it is still to receive a formal communication pertaining to the revised fuel prices, owing to which the pump owners have continued to sell fuel at earlier prices. Ali Daruwalla, spokesperson, PDA, Pune, said, "The revised prices will be implemented once we receive the formal communication from the government and fuel companies.

We are expecting the revised figures for Pune city any time."Chief minister Prithviraj Chavan on Wednesday announced 2% reduction in VAT on diesel and kerosene sold at fair price shops through the public distribution system. With this, the VAT, which was at 23%, will now come down to 21%.

Earlier, the PMC had announced a reduction of one per cent in octroi on fuel, which include petrol and diesel. With the waiver, diesel prices are likely to be reduced by over a rupee, while petrol prices are expected to reduce by around 60 paise.