Delhi govt decides on cutting VAT on diesel, Kejriwal to address PC soon: Sources
The Aam Admi Party government in Delhi has decided on cutting VAT on diesel in a cabinet meeting earlier today. Chief Minister Arvind Kejriwal, addressing a press conference, announced the lowering of the VAT. Diesel price in Delhi as of today is Rs 81.94 per litre. Delhi Cabinet has decided to reduce VAT on diesel from 30% to 16.75%. This will reduce price of diesel in Delhi to Rs 73.64.
"The two crore people of Delhi have brought Corona under control. However, we need to ensure social distancing and wear masks, because if we become complacent, Corona might spike again. We now need to focus on how we can revive the economy of Delhi because many people have been affected due to shutting down of businesses and industries. People of Delhi have accepted big challenges in the past and have overcome them. We will accept and win this economic challenge as well," said Kejriwal.
Over the last few weeks, petrol and diesel prices have zoomed up across the country. The situation is such that for the first time, the price of diesel is more than that of petrol at several places including Delhi.
The current price of petrol in Delhi is Rs 80.4 per litre, about a rupee and a half lower than diesel.
On June 1, 2020, the price of diesel in Delhi was Rs 69. By the month end, it had zoomed up to Rs 80. This was the time when petrol and diesel saw a record streak of price rise on daily basis.
Many industries, businessmen and traders were demanding a reduction in the prices of diesel, because the prices were affecting the budget of the people, and impacting the trade and businesses.
