Diesel prices in Delhi could fall by over Rs 8 per litre after the Delhi Cabinet on July 30 approved a cut in value-added tax (VAT) on diesel to 16.75 percent from 30 percent.
Chief Minister Arvind Kejriwal said the VAT cut will reduce price of diesel in the national capital to Rs 73.64 per litre from Rs 82 per litre. That is a reduction of Rs 8.36 per litre.
The chief minister said the move is aimed at helping businesses in Delhi recover after having faced losses due to the novel coronavirus pandemic-triggered lockdown.
In early May, the Delhi government had hiked VAT
on petrol and diesel to 30 percent from 27 percent and 16.75 percent, respectively. This was expected to boost the state revenue, which had taken a massive hit due to the lockdown.