Chief Minister Nitish Kumar has decided to cut local taxes in Bihar to make diesel prices 85 paise cheaper. Last week, in an attempt to reduce fuel subsidies, the centre increased the price of diesel by Rs. 5, excluding Value-Added Tax (VAT). The price hike was part of a series of big-bang reforms that included limiting the supply of subsidised cooking gas to households and opening up the retail sector to foreign super-market chains like Wal-Mart.