NEW DELHI: In a major relief to fuel consumers in the national capital, the Delhi government on Thursday reduced VAT on diesel from 30 per cent to 16.75 per cent, making the transport fuel cheaper by Rs 8.36 per litre.
With this, pump price of diesel will now come down to Rs 73.64 a litre from the existing level of Rs 81.94 a litre. Petrol however will continue to be priced at Rs 80.43 a litre as there is no change in state taxes on it. The price change would be reflected from Friday when retail prices are revised by oil marketing companies.
Briefing about the decision in a Press Conference, Chief Minister said, "We were receiving demands from many sectors in Delhi to reduce the VAT on diesel. This cut will strengthen the economy in Delhi."
The proposal for reduction in VAT was passed in the cabinet meeting on Thursday. Delhi was the only major city in the country where diesel prices were higher than that of petrol. While diesel is priced at Rs 81.94 a litre here, petrol is holding back the same price since June 29 at 80.43 a litre.
Delhi Petroleum Dealers Association (DPDA) has welcomed the Delhi government's decision to reduce VAT on diesel. DPDA is a body of petrol pumps owners in Delhi with membership of about 400 fuel pumps. (IANS)