'Petrol, diesel in Delhi cheaper than NCR': What Arvind Kejriwal said on VAT cut

Motorists in Delhi had been paying substantially higher price for each litre of petrol and diesel than counterparts in satellite cities in Uttar Pradesh and Haryana thus far. While the two states had previously announced a cut in taxes, the Delhi government moved in a similar direction on Wednesday with a reduction in VAT from 30% to 19.4% effective intervening night between Wednesday and Thursday. Delhi CM Arvind Kejriwal said that this would make petrol prices in the capital cheaper than elsewhere in the National Capital Region (NCR).

The decision to cut VAT on petrol was taken during a cabinet meeting chaired by Kejriwal. The eventual decision will see per-litre petrol price climb down from ₹103 to ₹95. "We made petrol quite cheaper in Delhi today. The VAT was reduced from 30 per cent to 19.4 per cent. Petrol and diesel have become cheaper in Delhi as compared to other NCR cities. I hope this step will give relief to the people of Delhi from price rise," Kejriwal tweeted.

Concerns over substantially higher fuel prices in comparison to rates in adjoining states were not just voiced by motorists in Delhi but many fuel pump owners in the city and near the state borders. Many locals had been crossing over to fuel stations in Gurugram, Noida and Faridabad to get a tankful for their vehicles. This is because Uttar Pradesh and Haryana had announced cut in VAT soon after Centre's decision to reduce excise duty on fuel prices days before Diwali.

The Delhi government's decision is expected to provide much-needed relief to motorists here even if fuel prices remain substantially higher than what these were just months ago.