The decision to reduce diesel prices was taken by the Kejriwal-led state government
The rising price of diesel has pinched the pockets of many people who depend on the oil-burners for their daily commutes. The rate has sky-rocketed so significantly that diesel prices sat above petrol prices for sometime. Delhi’s state government has now decided to cut the amount of VAT they charge on diesel to bring the price back below that of petrol.
Diesel previously retailed at Rs 81.64 per litre in comparison to petrol’s current rate being marginally lower at Rs 80.43 per litre. The Kejriwal-led government has decided to reduce the VAT (Value Added Tax) on diesel from 30 percent to 16.75 percent. This will lead to a reduction of over Rs 8 per litre for diesel, bringing its price tumbling down to Rs 73.56 per litre.
As the decision has been taken by the Delhi state government, the relief from these exorbitantly high prices of diesel can only be availed by those filling up their tanks in the national capital. However, this drastic reduction in prices could push the central government to also consider a cut in taxes elsewhere on petrol and diesel. This move could bolster the economy which is recovering from the setback caused by the COVID-19 pandemic.
Also Read: Hyundai Creta Diesel Sales Booming Despite Increasing Fuel Prices
Here’s a look at petrol and diesel prices from some of the metropolitan cities of India:
As you can see from the table above, the only other city in which diesel is more expensive than petrol is Ahmedabad. In all other major cities in India, petrol prices are north of Rs 80 per litre, with diesel prices resting firmly south of that number.