The Delhi government on Wednesday decided to hike the VAT rates on petrol to 25 percent (currently 20 percent) and diesel to 16.6 percent (currently 12.5 percent).
Justifying the decision, the state government’s statement said that the decision was taken in the “meeting of Finance Ministers of Northern States on May 21, 2015” to bring parity in tax rates.
The hike in VAT will result in the increase in the price of “petrol by Rs 2.78 per ltr. (approx.) and in the price of diesel Rs 1.83 per ltr. (approx.).”
The government spokesperson said that the effective retail price of petrol, even after this increase, ‘will be lowest in Delhi as compared to neighbouring States including Haryana, Punjab and Uttar Pradesh.
After the increase in retail prices of petrol and diesel in Delhi, the retail price for petrol in Delhi will be ` 69.43 per ltr. (approx.) and for diesel will be ` 52.07 per ltr. (approx.).