Diesel in Delhi gets cheaper by Rs 8 per litre, VAT cut to 16.5%

New Delhi : Delhi Chief Minister Arvind Kejriwal has announced a VAT (Value Added Tax) cut by 16.5%, which brings down the diesel price in the national capital by Rs 8 per litre. Currently, diesel costs around Rs 81.94 per litre in the metro, almost 2 per cent higher compared to petrol, which is at Rs 80.43 per litre.

From past few weeks, diesel has remained a little costlier than the petrol.

In the virtual press briefing, CM Arvind Kejriwal mentioned that the VAT cut will help Delhi in reviving the economy, which has become a big challenge for the government in recent days. The Chief Minister said traders and industrialists had demanded a cut in VAT.

The price of diesel will come down to Rs 73.64 a litre with the reduction in VAT, he said. The new prices will come to effect from 6 AM on Thursday.

A crash in travel demand due to the spread of the coronavirus pandemic has hurt oil markets. Currently, global crude oil prices hover around the $44 per barrel mark.