Petrol, diesel prices slashed nationwide by Rs 2; Delhi rates go up due to VAT

Petrol and diesel will be dearer in the national capital with the AAP government's decision to increase VAT rates on them.

By: PTI | New Delhi | Updated: July 16, 2015 8:02:46 am
petrol price, petrol, petrol price hike, diesel, diesel price, vat, delhi petrol price, aap vat, vat in delhi, delhi vat, latest news After the increase in retail prices of petrol and diesel in Delhi, the retail price for petrol will be Rs 69.43 per ltr. (approx.) and the same for diesel will be Rs 52.07 per ltr.(approx.).

Petrol and diesel will be dearer in the national capital with the AAP government’s decision to increase VAT rates on them. However, the Centre reduced the price of petrol and diesel by Rs 2 just after the decision to hike the prices by the Delhi government.

The raise, effective from midnight, is the first hike in Value Added Tax effected by Aam Aadmi Party government since capturing power in Delhi.

“The VAT rate on petrol has been increased from 20% to 25% and on diesel from 12.5% to 16.6%, thereby resulting increase in the price of petrol by Rs 2.78 per litre (approx.) and in the price of diesel Rs 1.83 per litre,” government said in a statement.

After the increase in retail prices of petrol and diesel in Delhi, the retail price for petrol will be Rs 69.43 per ltr. (approx.) and the same for diesel will be Rs 52.07 per ltr.(approx.).

According to government, on the basis of the decision taken in the meeting of Finance Ministers of northern states on May 21, 2015 for bringing uniformity in the tax rates, it has decided to increase VAT rate on diesel and petrol.

A senior government official said that after this increase in the rate of VAT, the retail price of diesel in Punjab, Haryana and Delhi will be almost the same.

The government has issued the notification in this respect today.

The Delhi Assembly had on June 30 cleared VAT Amendment Bill, tabled by Arvind Kejriwal’s government, which allowed it to increase VAT up to 30 per cent on 11 goods including petroleum products, tobacco and aerated drinks.

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