Petrol prices fall in Delhi; state govt announces cut in VAT

Petrol prices have gone down by around Rs 8 per litre from Rs 103 per litre to Rs 95 per litre in Delhi as the state government slashed the value-added tax (VAT) on petrol. The Delhi government has slashed the VAT on petrol from 30 per cent to 19.40 per cent. After the Cabinet meeting chaired by Delhi CM Arvind Kejriwal, it was decided that VAT will be slashed by 10.60 per cent and the revised petrol rates will come into effect from midnight.

Petrol prices were higher in Delhi as compared to other NCR cities in Uttar Pradesh and Haryana where state governments had slashed VAT after the Union Government reduced the excise duty on fuel. On Diwali, the Government of India (GoI) slashed excise duty on petrol by Rs 5 per litre and excise duty on diesel by Rs 10 per litre across the country.

Not only have the prices of petrol have gone down in the national capital but the prices of aviation turbine fuel (ATF) have also reached Rs 77,532.79/kL or $817.37/kL after a decline of Rs 3,302.25/kL.

Meanwhile, the Union Government’s revenue from collection of central excise duty on manufacturing of various petroleum products in the country went up by ~26.5 per cent to Rs 1,99,416 crore. Revenue of Central Excise on petrol on petrol and diesel rose to Rs 1,33,455.34 crore and Rs 58,012.81 crore respectively whereas the revenue of excise duty on ATF went up to Rs 684.32 crore.

Also read: ATF prices slashed by Rs 3,302.23/kL in Delhi; check latest rates here