Petrol and diesel prices were today cut by Rs 2 per litre, excluding local levies, in the second reduction of rates this month by oil companies, but petrol will actually become costlier in the national capital due to an increase in VAT rate effected by the Aam Aadmi Party(AAP) government here.
The decrease in diesel prices would also be less in Delhi due to a hike in Value Added Tax (VAT) by Arvind Kejriwal -led Aam Aadmi Party government.
In Delhi, petrol will cost Rs 61.20 a litre from Tuesday while diesel will be available at Rs 44.45 a litre. There will be marginal variations due to local levies in other places.
This is the fourth straight cut in petrol prices and fifth in diesel prices. Petrol prices have fallen by about Rs 6.5 a litre since June-end, while diesel has declined by about Rs 9 a litre since mid-June.
A litre of diesel will cost Rs. 44.45 as compared to Rs. 44.95 currently.
Oil firms had last cut petrol price by Rs. 1.27 a litre and diesel by Rs. 1.17 per litre with effect from August 15.
Prior to that, rates of petrol were cut on August 1 by Rs. 2.43 a litre and that of diesel by Rs. 3.60.
“Since last price change, there has been a decrease in international prices of both petrol and diesel. However, Rupee-US Dollar exchange rate has depreciated during this period. The impact of both these factors warrants a downward revision in prices, the impact of which is being passed on to the consumers with this price decrease,” IOC said in a statement.
The movement of prices in international oil market and the exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes, the company said.
Following are the revised rates of petrol and diesel in four metros after oil firms cut prices, with effect from midnight tonight:
“It’s cheating and fraud as they are putting a burden of around Rs 5,000 crore on people of Delhi annually,” claimed Gupta.He also welcomed the Centre’s decision, which came after the Delhi government’s hike, to cut petrol and diesel prices by Rs 2 per litre.