Diesel to be cheaper by 54 paise/litre as Delhi government slashes VAT

NEW DELHI: Diesel will be cheaper by 54 paise a litre from Saturday as the Delhi government late on Friday night reduced VAT to 15.75 per cent from 18.5 per cent.

Diesel would now cost Rs 50.41 per litre against Rs 59.94 in Delhi.

The new rates are at par with the price in Haryana, especially in respect to Gurgaon and Sonepat - the two cities that drew a lot of refulling business due to tax differential.

Delhi has about 400 outlets with a combined daily sale of 1200 kilo-litres.

The AAP government had some three months back raised VAT on diesel to 18.5 per cent from 16.5 per cent. This gave advantage to fuel retailers in neighbouring states, prompting a drop in sales at pumps in Delhi, especially those bordering Haryana and UP.

However, diesel continues to be cheaper in UP even after the latest reduction in VAT.