In a big relief for the Delhiites, the state government on Wednesday decided to reduce Value-Added Tax (VAT) on petrol to 19.4% from 30% earlier. Due to this reduction in VAT, petrol price in Delhi will go down by Rs 8 per litre in the national capital.
The price of petrol after the VAT cut will go down from the current Rs 103.97 per litre to Rs 95.50 per litre. According to the price-buildup available on IOCL website, pre-VAT petrol price in Delhi at present is Rs 79.98 and the VAT component was Rs 23.99. Now, after the VAT reduction, VAT will come down to Rs 15.52.
Worth mentioning here is that petrol price in Delhi was higher as compared to the NCR cities in Uttar Pradesh and Haryana, where the state governments had announced a VAT cut following the Centre’s reduction in excise duty on fuel prices last month. Due to this Delhiites were going to NCR cities to fill petrol, affecting the revenue of petrol pump owners in Delhi and impacting VAT collections of the state as well.
It may be noted that fuel prices were kept unchanged for 27 consecutive days. Earlier on November 4, the government had slashed excise duty on petrol and diesel to bring down fuel prices from record-high levels.
In Delhi, petrol is currently sold for Rs 103.97; while diesel rate stood at Rs 86.67.
Meanwhile, international crude prices, one of the major deciding factors of petrol, diesel prices in India, have come down by over 10% over the last few days. So, fuel prices may come down further in the coming days.
