Petrol Price In Delhi To Go Down By Rs. 8 Per Litre Due To VAT Reduction

The Delhi government has decided to reduce the value-added tax (VAT) on petrol to 19.40 per cent from the earlier 30 per cent. Following the reduction, petrol prices in the nation's capital will be slashed by Rs. 8 per litre. The revised prices will come into effect in Delhi from midnight today. As of today, December 1, 2021, petrol prices in Delhi stand at Rs. 103.97 per litre, while diesel is being retailed at Rs. 86.67 per litre. Come December 2, 2021, petrol prices in Delhi will come down to 95.97 per litre.

Also Read: Central Government Reduces Prices On Petrol By Rs. 5, Diesel By Rs. 10 For Diwali

Earlier on November 3, 2021, the central government announced a reduction in excise duty on petrol and diesel. While the price of petrol was reduced by Rs. 5 per litre, diesel became cheaper by Rs. 10 per litre, bringing fuel prices slightly down from the record-high levels. Back then, the Centre had also urged state governments to reduce Value Added Tax (VAT) levied on petrol and diesel to further bring relief to customers. Following this, BJP-ruled states and Union Territories did reduce VAT on petrol and diesel, bringing petrol prices down by up to Rs. 8.7 a litre while diesel rates were slashed by Rs. 9.52 a litre.

Also Read: Petrol, Diesel Prices Fall Further After BJP-Ruled States Lower Fuel Taxes

Fuel prices in India have remained unchanged for 27 consecutive days,

While fuel prices in India have remained unchanged for 27 consecutive days now, in the last 18 months before that, petrol prices were hiked by up to Rs 36 per litre, while diesel became dearer by about Rs. 27 per litre. In comparison, the reduction is only a marginal relief to consumers. Having said that, considering the price cut on petrol in Delhi, the recent reduction of VAT is certainly a welcome move, and we hope other states follow suit.

State-run oil companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum revise the fuel prices everyday, by taking into account the crude oil prices in the international markets, and the rupee-dollar exchange rates.