Delhi Chief Minister Arvind Kejriwal on Thursday announced a reduction in value-added tax or VAT to 16.75 per cent, which would make the price of diesel in the national capital cheaper by Rs 8.36 per litre. Until now, the VAT was at 30 per cent in Delhi. Currently, the price of diesel is Rs 81.94 per litre in Delhi, much higher compared to petrol, which is at Rs 80.43 per litre.
Here are five things to know:
With effect from 6 am on Thursday, the price of diesel was at Rs 81.94 per litre in Delhi, and that of petrol at Rs 80.43 per litre.
The gap between petrol and diesel rates has been increasing in the metros over past few days, with diesel remaining costlier than petrol in the national capital.
Petrol and diesel prices vary in different parts of the country due to VAT or value-added tax.
State-run Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum – which account for the majority of fuel stations in the country – review the prices on a daily basis, and implement any revisions with effect from 6 am.
Domestic petrol and diesel prices are determined by the crude oil and the rupee-dollar exchange rates.
Delhi Cabinet has decided to reduce VAT on diesel from 30% to 16.75%. This will reduce price if diesel in Delhi from Rs 82 to Rs 73.64 i.e. by Rs 8.36 per litre | LIVE https://t.co/UDKzuSQJI9
— Arvind Kejriwal (@ArvindKejriwal) July 30, 2020