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Reducing the VAT on the product to 12.5% from 20%
July, 16th 2010

Diesel will get cheaper by Rs 2.70 a litre in Delhi with the state government reducing the value added tax on the product to 12.5% from 20%.

The Empowered Group of Ministers, on June 25 freed petrol from price controls and had said that diesel prices too will be market determined. This move by the government lead to an immediate upsurge in the prices of petrol and diesel by Rs 3.50 and Rs 2 a litre, respectively.

The EGoM also raised the prices of LPG by Rs 35 per cylinder, while kerosene prices too have been hiked by Rs 3 per litre.

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