New Delhi: The Delhi government on Wednesday slashed the value added tax (VAT) to fuel price from 30% to 19.40%, making petrol cheaper by ₹8 per litre in the national capital.
The cost of petrol in Delhi at present is Rs 103.97. After the price dip it is 95.97 according to reports.
In India, fuel prices differ from state to state depending on the local taxation (VAT) and freight charges. Apart from this, the central government charges an excise duty on auto fuels.
The Centre earlier had announced a reduction of Rs 5 per litre in the excise duty on petrol and a Rs 10 per litre on diesel in the first week of November, after fuel prices touched a record high.
Since then, opposition parties in Delhi have been urging the state government to cut VAT on petrol at their end as well. Delhi BJP leaders had demanded that VAT be cut by Rs 10 per litre of petrol, after the Centre’s announcement.
The rates of petrol and diesel are revised daily based on the average price of fuel in the international market in the preceding 15-days, and foreign exchange rates.
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