The Delhi government on Wednesday reduced value-added tax (VAT) on petrol to 19.40 per cent from 30 per cent.
Following the reduction, petrol rates will be cut by ₹ 8 per litre in the national capital. The new prices will be effective from midnight today.
Meanwhile, fuel prices were kept unchanged for 27 consecutive days. Earlier on November 4, the government had slashed excise duty on petrol and diesel to bring rates slightly down from the record-high levels.
In Delhi, petrol is currently sold for ₹ 103.97; while diesel rate stood at ₹ 86.67, according to Indian Oil Corporation. In Mumbai, petrol is retailed at ₹ 109.98 per litre; while diesel is being sold at ₹ 94.14 per litre.
Among the metro cities, fuel rates are the highest in Mumbai. The rates vary across the states due to value-added tax or VAT.
The Centre had reduced the central excise duty by Rs 5 and Rs 10 per litre on the prices of petrol and diesel respectively. Subsequently, several states cut the Value-Added Tax (VAT) on fuel rates.
Globally, oil prices rose more than 2 per cent, recouping some of the steep losses from the previous session, as major producers prepared to discuss how to respond to the threat of a hit to fuel demand from the Omicron variant.
CommentsBrent crude futures rose $1.90, or 2.7 per cent, to $71.13 a barrel, after a 3.9 per cent slump on Tuesday. U.S. West Texas Intermediate (WTI) crude futures rose $1.71, or 2.6 per cent, to $67.89 a barrel, after a 5.4 per cent drop on Tuesday.
