Delhi cuts VAT on diesel, price drops by over Rs 8 a litre

Delhi chief minister Arvind Kejriwal has cut the value added tax on diesel to 16.75 per cent from 30 per cent, leading to a price drop of over Rs 8.36 per litre in the capital. This has raised hopes that the Modi government would take a cue and provide relief to consumers too.

Kejriwal said the move will help revive Delhi’s economy. A hike in VAT in May had taken diesel rates above petrol last month. The state government had hiked the VAT to generate revenue as the economy had come to a complete halt because of the lockdown.

The Modi government had also raised the excise duty on petrol and diesel after the global oil prices plunged instead of passing on the benefits to the consumers.