The Delhi government on Wednesday reduced value-added tax (VAT) on petrol to 19.40 per cent from 30 per cent.
Following the reduction, petrol rates will be cut by Rs 8 per litre in the national capital. The new prices will be effective from midnight today, reported NDTV.
Meanwhile, fuel prices were kept unchanged for 27 consecutive days. Earlier on November 4, the government had slashed excise duty on petrol and diesel to bring rates slightly down from the record-high levels.
In Delhi, petrol is currently sold for Rs 103.97; while the diesel rate stood at Rs 86.67, according to Indian Oil Corporation. In Mumbai, petrol is retailed at Rs 109.98 per litre; while diesel is being sold at Rs 94.14 per litre.
Among the metro cities, fuel rates are the highest in Mumbai. The rates vary across the states due to value-added tax or VAT.
In another development, national oil marketing companies have increased the price of commercial 19kg LPG cylinder by Rs 100.50, taking the new price to Rs 2,101 in Delhi, reported Business Standard, citing sources privy to the matter.
This is the second-highest price of 19kg commercial cylinder after 2012-13 when it used to cost around Rs 2,200 per cylinder. However, there is no increase in prices of other domestic cylinders weighing 14.2kg, 5 kg, 10kg composite or 5kg composite cylinders.
The difference between prices of 14.2kg domestic cylinder and 19kg commercial cylinder has been increased. Presently, a 14.2kg Domestic cylinder in the national capital cost Rs 899.50 and the 19kg cylinder commercial cylinder is costing Rs 2,101.
This may increase the diversion of 14.2kg domestic gas cylinder into restaurants, tea stalls etc which constitute the largest user segment of the 19kg cylinder.