The Delhi government on Wednesday reduced the value added tax, or VAT, on petrol prices in the city to 19.4%, from the earlier 30%. As a result, petrol prices will fall by Rs 8 in the national Capital, ANI reported.
The new prices will be effective from Tuesday midnight. Currently, petrol is priced at Rs 103.97 per litre, while diesel costs Rs 86.67 a litre.
With fuel prices reaching record high levels, the Centre had slashed excise duty on petrol by Rs 5 and on diesel by Rs 10 per litre last month. Fuel prices across the country have not gone up since the decision came to effect on November 4.
Meanwhile, many states have slashed VAT on fuel products since then. Revenues from excise duty go to the Union government, while the state governments earn revenues from VAT.
The Uttarakhand government has also reduced petrol prices in the state by Rs 7 per litre. Uttar Pradesh has slashed prices of petrol and diesel by Rs 12 per litre.
The Bihar government has reduced prices of petrol and diesel by Rs 3.20 per litre and Rs 3.90 a litre, respectively. In Sikkim, both the fuel products have been made cheaper by Rs 7 per litre.
Rajasthan has cut value added tax on petrol by Rs 4 and diesel by Rs 5.