The reduction in the petrol rates will come into effect from midnight.
According to official sources, a decision to reduce the VAT rate by 10.60 per cent was taken at a Cabinet meeting chaired by Delhi Chief Minister Arvind Kejriwal on Wednesday.
Kejriwal said in a tweet in Hindi, “Today we have made petrol very cheap in Delhi. We have slashed the VAT rate from 30 per cent to 19.4 per cent. Petrol and diesel have become cheaper in Delhi compared to other NCR cities and towns. Hope this step will bring relief to people living in Delhi from the price rise.”
Till now petrol was costlier in Delhi than in other NCR cities where state governments had slashed the VAT rate on petrol and diesel following a reduction in excise duty on fuel by the Centre on the occasion of Diwali. The Central government had reduced excise duty on petrol by Rs 5 per litre and by Rs 10 per litre on diesel throughout the country.
Central government-run marketing companies like the Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum revise the petroleum rates on a daily basis in view of the crude oil prices in the international market and the rupee-dollar exchange rates.