Petrol and diesel prices were on Wednesday cut by Rs 2 per litre, excluding local levies, in the second reduction of rates this month by oil companies, but the petrol would actually become costlier in the national capital due to an increase in VAT rate in the national capital.
The decrease in diesel prices would also be less in Delhi due to a hike in Value Added Tax (VAT) by AAP government.
While the rates will reduce by a bigger number all over the country, petrol price in Delhi will go up by 28 paise a litre after considering local government’s decision to hike VAT or sales tax on the fuel from 20 to 25 per cent.
Similarly, diesel rates will fall across the country. In case of Delhi, where the VAT on the fuel has been raised from 12.5 per cent to 16.6 per cent, there will be smaller reduction of 50 paise per litre.
Petrol in Delhi will cost Rs 66.90 per litre from Thursday instead of Rs 66.62 at present. A litre of diesel will cost Rs 49.72 per litre as against Rs 50.22 earlier, Indian Oil Corp (IOC), the nation’s largest oil company, said.