Diesel to become cheaper by Rs 8 in Delhi from August 1 on VAT cut
NEW DELHI: Diesel will become cheaper by Rs 8.36 per litre in Delhi from Friday as a result of the Arvind Kejriwal government’s decision to restore VAT (value-added tax) to May 4 level of 16.75%, a move that will benefit the Capital’s petrol pumps by drawing business from neighbouring cities in UP and Haryana as well as encouraging sale of diesel cars.
“Our main challenge now is to get the economy back on track. Many businesses are shut, industries are shut. This decision to lower VAT is an important step towards reviving the economy. We were getting representations from trade bodies that the high price of diesel was a source of difficulty,” Kejriwal said while announcing the decision on Thursday.
His government had on May 4 jacked up VAT on diesel to 30% from 16.75% and on petrol from 27% to 30%, with the aim of mopping up resources to fund measures against Coronavirus pandemic. As a result, from May 5 diesel price spiked by Rs 7.10 a litre, marking the steepest-ever increase for any fuel, and petrol price rose by Rs 1.67 in Delhi.
