New Delhi: Delhi cabinet on Thursday decided to reduce Value-Added Tax (VAT) on the fuel from 30 per cent to 16.75 per cent. As a result, diesel will become cheaper by Rs 8 per litre.
The diesel price will come down from Rs 82 per litre to Rs 73.64 per litre in the national capital.
Chief Minister Arvind Kejriwal said that the decision will help in propelling Delhi’s economy.
He said, “There was a serious challenge of reviving the economy of Delhi but it will be achieved together with cooperation of people.”
The last increase in Diesel price was implemented on July 25 when oil companies had increased the price by 15 paise per litre. Diesel prices surpassed the petrol prices for the first time in June.
The petrol and diesel prices are dependent on international product prices and other conditions. Goods and Services Tax (GST) is not applicable on petrol and diesel in India.
The other factors which affect the price are excise duty, VAT, marketing cost and margin, dealers commission etc.