Last Updated on Dec 3, 2021 by Manonmayi
Knowing how the petrol prices were rising, this news comes in like a knight in shining armour! The Delhi government lowered the value-added tax (VAT) on petrol prices from 30% to 19.40% on 1 December 2021, bringing the prices in the national capital down by Rs. 8 per litre.
The decision was made earlier in the day during a Cabinet meeting hosted by Chief Minister Arvind Kejriwal. On the eve of Diwali in November, the Centre lowered excise tax on petrol by Rs. 5 per litre and diesel by Rs. 10 per litre to reduce retail prices throughout the country. Several states and union territories, particularly those headed by the BJP and its supporters, followed suit after the Centre’s surprising decision.
Fuel prices across the country remained stable for 28 days after the Centre’s decision, until 1 December 2021. The total tax rate on petrol has dropped to 50% and the rate on diesel has dropped to 40%. The proportion of taxes in the retail prices will be slightly lower in the states that have previously declared a VAT decrease. Earlier in the day, petrol was selling for Rs. 103.97 per litre, while diesel was selling for Rs. 86.67 per litre.