The government of Delhi has decided to reduce the VAT(Value Added Tax) on diesel thus reducing the diesel price by around Rupees 8 per litre in the national capital.
Arvind Kejriwal, the Chief Minister said on Thursday, “Delhi Cabinet has decided to reduce VAT on diesel from 30% to 16.75%. This will reduce the price of diesel in Delhi from Rs 82 to Rs 73.64 i.e. by Rs 8.36 per litre.”
He added, “This is one of the several measures taken by our government to revive Delhi’s economy. Earlier this week, we had launched a portal to connect job seekers with potential employers.”
Arvind Kejriwal further said that to discuss other ways to revive Delhi’s economy he will be connecting with other experts and industry groups over video conferencing.
After a series of hike in prices, diesel was retailing at its the highest ever rate in the national capital. In fact, diesel has been selling at a higher price than petrol. This happened because the Delhi government raised VAT on diesel sharply. This hike was the 19th consecutive rate hike.
Fuel rates differ from state to state. They depend upon the incidence of VAT or local sales tax.
Since July, rates of fuel have been continuously revised. The cumulative increase in diesel price since June 7 now totals Rs 12.55 per litre.
Before June 7, for 82 days oil companies had not revised prices of diesel and petrol. This was done so because they adjusted a record increase in excise duty by the government against the fall in rates warranted due to international oil prices slumping to a two-year low.
Before the start of a daily price surge, petrol was being sold at Rs 71.26 per litre in Delhi and diesel at Rs 69.39 a litre on June 6. For the first time, in June, the Diesel price hike in Delhi crossed Rs 80 for a litre.