Diesel in Delhi will get cheaper by Rs 8 as the government has decided to reduce value-added tax (VAT) from the existing 30% to 16.75%. The decision comes as a relief for the residents of Delhi NCR region where the price of diesel had risen above petrol in the last few weeks.
Delhi Chief Minister, Arvind Kejriwal said that the price of Diesel was quite high in the recent past costing about Rs 82 per litre. In a cabinet meeting held on 30 July, Thursday, he revealed that the government decided to cut the rate of VAT on Diesel in a bid to revive the economy of the country’s capital post the lockdown.
Why Did Diesel Cost More Than Petrol?
High Diesel prices in the past were primarily due to various taxes that constitute more than half of the selling price of the fuel. To break it down, Diesel costs Rs. 24.62 per litre, excise duty levied by the central government is Rs, 31.83 respectively. Further, a VAT of Rs 18.45 for Diesel is was charged by the state government. Apart from these, a dealer commission is added.
The Diesel price in Delhi today (31st July 2020) is Rs. 73.56 per litre, much lower than the old price of Rs. 81.94 per litre.