Petrol prices in national capital fell by Rs 8 per litre on Wednesday after the Delhi government cut down Value Added Tax (VAT). In May 2020, VAT on petrol rose from 27 to 30% and with the new move, it will be brought down to 19.40 per cent.
New rates will come into effect from midnight. This decision came after Chief Minister Arvind Kejriwal chaired a Cabinet meeting this morning. Currently, the petrol is being sold at Rs 103.97 and the new price should be around Rs.96.
In early November, the Centre had reduced petrol and diesel rates by Rs 5 and Rs 10 per litre respectively. Post the move, the Opposition parties in Delhi have been urging the AAP-led state government to cut VAT on petrol by at least Rs 10 per litre.
In India, fuel prices differ from state to state depending on the local taxation (VAT) and freight charges. Besides, the central government charges an excise duty on auto fuels. After adding excise duty, dealer commission and VAT, the retail selling price of the petrol gets nearly doubled.
From June 2017 onwards, the petrol and diesel prices in India are being revised daily at 6 a.m. via the dynamic fuel price method. Earlier, this exercise used to take place every fortnight.
Oil marketing companies keep diesel, petrol prices unchanged
Earlier, oil marketing companies have kept the prices of diesel and petrol unchanged across major Indian cities. It is noteworthy to mention here that prices of the petrol and diesel have been untouched post the revision of duties by the Centre and state governments in early November.
Accordingly, diesel and petrol prices in Delhi remained static at Rs 86.67 per litre and Rs 103.97 per litre, respectively on Tuesday. In the financial capital Mumbai, they were priced at Rs 94.14 and Rs 109.98, respectively.
Prices of petrol and diesel also remained static in Kolkata at Rs 89.79 and Rs 104.67, respectively. In Chennai, the rates remained at Rs 91.43 and Rs 101.40, respectively.
Across the country as well, the price of the fuel largely remained unchanged, but the retail rates varied depending on the level of local taxes.