Petrol price in Delhi to get cheaper by Rs 8 per litre as govt slashes VAT to 19.40%

The Delhi government on Wednesday decided to reduce the Value-Added Tax (VAT) on petrol, bringing down the price of the fuel in the city by about Rs 8 per litre. The decision was taken in a meeting of the Delhi cabinet chaired by Chief Minister Arvind Kejriwal on Wednesday. With this, the petrol price is all set to reduce in the national capital. The new rates would be effective from midnight today.

At a cabinet meeting chaired by Kejriwal, it was decided that the VAT on petrol will be reduced from the present 30 percent to 19.4 percent, leading to a cut of around Rs 8 per litre, officials said.

The price of petrol after the VAT cut will go down from the current Rs 103 per litre to Rs 95 per litre, sources told PTI.

The petrol price in Delhi was higher as compared to the NCR cities in Uttar Pradesh and Haryana, where the state governments had announced a VAT cut following the Centre reducing the excise duty on fuel prices.

To control the rising fuel prices in the country, the Centre had on the eve of Diwali, announced excise duty cut on fuels resulting in a sharp decrease in petrol and diesel prices across the country. The government had cut the price of petrol by Rs 5 and that of diesel by Rs 10. Following this decision, several states, mostly ruled by National Democratic Alliance (NDA) and allies have also cut the Value Added Tax (VAT) on petrol and diesel prices.

Meanwhile, fuel prices remained unchanged for the 27th consecutive day on 1 December after the Centre cut the excise duty to bring down retail rates from record highs.

With inputs from PTI