Petrol price to come down to Rs 71.92 in Delhi

In a partial relief to the common-man, Delhi Chief Minister Sheila Dixit on Monday announced a 20 per cent reduction in the Value Added Tax (VAT) on petrol in the national capital. The announcement made by Dixit while presenting the state budget, translates into a Rs 1.25 reduction in petrol price, making the effective price to be Rs 71.92. 

While petrol will now be cheaper, the Delhi government has imposed a 5 per cent VAT on CNG. CNG currently costs Rs 35.45 per kg in Delhi. Earlier in the day, the government said it is not considering raising rates of diesel, domestic gas (LPG) and kerosene for the moment.

"We are not considering hike prices of diesel, domestic LPG and kerosene. It is out of question right now," Oil Minister S Jaipal Reddy told reporters after a meeting called by Finance Minister Pranab Mukherjee to discuss the impact of fuel price hike on inflation.

Chief Economic Adviser Kaushik Basu was also present at the inter-ministerial grouping on inflation.Reddy said no dates have yet been fixed for convening a meeting of a ministerial panel to decide on revising rates of diesel, LPG and kerosene.

Last week, a steep hike of Rs 7.50 per litre had been announced by oil companies in petrol prices. After the hike on Wednesday, the price of petrol had gone up to Rs 73.18 per litre from Rs 65.64. Dikshit, had however, justified the steep hike saying oil companies were incurring huge losses and the hike was necessary. Federation of All India Petroleum Traders had said that a reduced VAT by the state government would be a welcome relief.