The price of petrol in Delhi has been reduced by Rs 8, after the Delhi cabinet decided to slash VAT from 30% to 19.40%.
Petrol will now cost Rs 95.97. Before the reduction, the cost was Rs 103.97.
The Centre had announced a reduction of Rs 5 per litre in the excise duty on petrol and a Rs 10 per litre on diesel in the first week of November, after fuel prices touched a record high.
Since then, opposition parties in Delhi have been urging the state government to cut VAT on petrol at their end as well. Delhi BJP leaders had demanded that VAT be cut by Rs 10 per litre of petrol, after the Centre’s announcement.
In India, fuel prices differ from state to state depending on the local taxation (VAT) and freight charges. Apart from this, the central government charges an excise duty on auto fuels.
The rates of petrol and diesel are revised daily based on the average price of fuel in the international market in the preceding 15-days, and foreign exchange rates.
