The Delhi government on Wednesday decided to reduce the VAT on petrol, bringing down the price of the fuel in the city by about Rs 8 per litre, a move Chief Minister Arvind Kejriwal said will give relief to Delhiites from inflation.
The petrol and diesel prices in Delhi have now become cheaper compared to other cities in the National Capital Region (NCR), Kejriwal said.
At a cabinet meeting chaired by the chief minister, it was decided that the Value-Added Tax (VAT) on petrol will be reduced from the present 30 per cent to 19.4 per cent, leading to a cut of around Rs 8 per litre, government officials said.
“We made petrol quite cheaper in Delhi today. The VAT was reduced from 30 per cent to 19.4 per cent. Petrol and diesel have become cheaper in Delhi as compared to other NCR cities. I hope this step will give relief to the people of Delhi from price rise,” Kejriwal said in a tweet.
The price of petrol after the VAT cut will go down from the current Rs 103 per litre to Rs 95 per litre, the officials said.
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’s decision to reduce the excise duty on fuel prices.
(Cover: Rising prices of diesel and the economic impact of Coronavirus have slowed down sale of diesel-powered vehicles in the country // Photo: Getty)