Petrol now costs Rs 95.41 per litre in Delhi after VAT reduction, Auto News, ET Auto

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The petrol and diesel prices in Delhi have now become cheaper than other cities in the National Capital Region (NCR), Kejriwal said.
The petrol and diesel prices in Delhi have now become cheaper than other cities in the National Capital Region (NCR), Kejriwal said.

Petrol prices in Delhi have come down to Rs 95.41 per litre from Rs 103.97 earlier after the state government slashed the VAT to 19.4% from 30%.

Petrol pump owners had requested the AAP government to slash VAT as prices of the fuel had come down in other areas of the NCR after their respective governments cut VAT.

Petrol pumps in Delhi were losing business to other states like UP and Haryana due to the difference in prices of petrol in Delhi and other areas like Noida, Gurugram.

Centre had on November 3 reduced excise duty on petrol and diesel by Rs 5 and Rs 10 respectively providing relief to consumers.

The petrol and diesel prices in Delhi have now become cheaper than other cities in the National Capital Region (NCR), Kejriwal said.

According to a Delhi government statement, the city’s diesel prices are already the “cheapest” in NCR at Rs 86.67 per litre while the rates of diesel in Noida and Gurgaon are Rs 87.01 and Rs 87.11 per litre, respectively.

“We made petrol quite cheaper in Delhi today. The VAT was reduced from 30 per cent to 19.4 per cent. Petrol and diesel have become cheaper in Delhi as compared to other NCR cities. I hope this step will give relief to the people of Delhi from price rise,” Kejriwal said in a tweet.

The 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 decision to reduce the excise duty on fuel prices.

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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.

The daily price revision in India is based on the average benchmark international fuel rate in the previous fortnight. So, the price on Sunday is decided by the average in the previous 15-days.