Kejriwal Govt. cut down the Petrol Price by Rs 8 per litre

Delhi CM Kejriwal decided to reduce the VAT to 19.4 per cent

New Delhi: Kejriwal Govt. has slashed down the VAT (value-added tax) to fuel price from 30% to 19.40%, making petrol cheaper by Rs 8 per litre in Delhi.

Chief Minister Arvind Kejriwal decided to reduce the VAT to 19.4 per cent during the Cabinet meeting in the morning.

Taking notes from this, the Chief Minister Mr Kejriwal tweeted, "once implemented the fuel price would become cheaper in Delhi as compared to other cities in the national capital region."

Earlier this month, the Central Govt. cut excise duty on petrol by Rs 5 per litre and Rs 10 per litre on diesel to bring down the retail prices across the country.

Following the Centre's surprise move, several states and Union territories, especially those governed by BJP and allies, also followed suit.

Fuel price remained unchanged for the 28th straight day on Wednesday across the country, following the Centre's decision. Before the Delhi government decided to slash VAT on fuel price, petrol fetched Rs 103.97 a litre while diesel sold for Rs 86.67 per litre earlier in the day.

On November 3, 2021, the central government announced a reduction in excise duty on petrol and diesel. While the price of petrol was reduced by Rs 5 per litre, diesel became cheaper by Rs 10 per litre, bringing fuel prices slightly down from the record-high levels.

Back then, the Centre had also urged state governments to reduce Value Added Tax (VAT) levied on petrol and diesel to further bring relief to customers. Following this, BJP-ruled states and Union Territories did reduce VAT on petrol and diesel, bringing petrol prices down by up to Rs 8.7 a litre while diesel rates were slashed by Rs 9.52 a litre.

Government-run oil refiners such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum revise the fuel rates daily, by taking into account the crude oil prices in the international markets, and the rupee-dollar exchange rates.