NEW DELHI: Diesel prices in Delhi will come down by more than Rs 8 a litre from midnight with the government deciding to cut value added tax on the fuel. City transporters welcomed the step as they had been demanding this for some time now.
After a Cabinet meeting on Thursday, Chief Minister Arvind Kejriwal said VAT on diesel would be brought down to 16.75 per cent from 30 per cent. This decision will bring down the diesel prices by Rs 8.36 per litre.
“This is one of the several measures taken to revive the Delhi economy. I will be connecting with several trade and industry experts soon to further work out steps for the economy. I believe that this step will aid in giving a push to the economy of Delhi. In the last one week, we have taken several measures to boost the economy,” Kejriwal said.
The Delhi government had increased VAT on fuel in order to make up for lost revenue. But this forced residents to go to neighboruing Haryana and Uttar Pradesh for cheaper fuel.
Now, the diesel price in Delhi will become lower by Rs 1-2 from Noida, Ghaziabad, Gurugram and Faridabad.
“This will help us. The government will also see an increase in revenue because most of trucks will now refuel in the city rather than looking for cheaper options,” said Rajendra Kapoor, president of Delhi Goods and Transport Organisation.