Diesel is Cheaper by Rs 8.38/- in Delhi As Kejriwal Reduced VAT

The price of diesel came down by Rs 8.38 in the national capital from Friday, a day after the Delhi government announced a reduction in the value-added tax or VAT applied to the fuel. The VAT was brought down to 16.75 per cent from 30 per cent in the metro. With effect from 6 am on July 31, the price of diesel was lowered to Rs 73.56 per litre in Delhi, from Rs 81.94 per litre, while that of petrol was left unchanged at Rs 80.43, according to a notification from Indian Oil Corporation.

In a virtual press briefing, the Chief Minister said the reduction in VAT would help propel Delhi's economy.

Delhi Chief Minister Arvind Kejriwal on Thursday announced a reduction in value-added tax or VAT applicable to diesel to 16.75 per cent, which would bring down the price of the fuel by more than Rs 8 per litre in the national capital. Until now, the value added tax was at 30 per cent in Delhi. Currently, the rate of diesel is Rs 81.94 per litre in the metro, almost 2 per cent higher compared to petrol, which is at Rs 80.43 per litre. Diesel has remained more expensive than petrol in Delhi for past few weeks.