Petrol will be Re 1.26 per litre cheaper in the capital soon. The Congress government of Sheila Dikshit in Delhi has decided not to impose 20 per cent Value Added Tax (VAT) on petrol prices.
State-run oil marketing firms had last Wednesday announced the steepest-ever hike in petrol prices - Delhi saw a Rs 7.50 a litre jump. After the cut in VAT the price of petrol in the capital will be Rs 71.92, down from Rs.73.18 a litre since last week.
Announcing the move while presenting the budget for Delhi today, Chief Minister Sheila Dikshit also said that Compressed Natural Gas (CNG) would cost more in the capital with a proposed levy of 5% tax.
Delhi is the third state to reduce taxes on petrol prices. Kerala and Uttarakhand, both Congress-ruled, had announced an immediate cut in VAT on petrol to ease the burden on the common man.