Massive drop in diesel prices in Delhi - Check new rate

Diesel Price in Delhi: It's a massive relief! According to a latest development, Delhi Cabinet decided to cut Value Added Tax (VAT) on diesel from 30 per cent to 16.75 per cent. With this big reduction in diesel VAT, the price in Delhi will go down from Rs 82 per litre to Rs 73.64 per litre. Chief Minister Arvind Kejriwal Thursday announced a reduction in the Value Added Tax (VAT) on diesel from the existing 30 per cent to 16.75 per cent, saying the move will help propel Delhi's economy. The decision was taken in a meeting of the Delhi Cabinet chaired by the chief minister.

The diesel price will be reduced by Rs 8.36 in Delhi due to the VAT cut, Kejriwal said in a virtual press briefing. He said there was a serious challenge of reviving the economy of Delhi but it will be achieved together with cooperation of people. The diesel price will now come down from Rs 82 a litre to Rs 73.64 a litre, he said and added that traders and industrialists in the city had demanded it. 

Earlier, before the decision was announced by Delhi government, it was reported that with global oil market stable for the past few days, consumers in India have been spared a price rise of auto fuels for the fourth consecutive day. Oil companies kept petrol and diesel prices unchanged on Thursday taking global cues where benchmark crude oil prices have remained static around $43 a barrel for the past few days now. In Delhi, diesel continues to be priced at Rs 81.94 a litre while petrol's steady run continues for 30 straight days at Rs 80.43 a litre.

While the price rise had gone for a pause now, sources in oil companies indicated that some increase could be expected later this week or early next week but it would be marginal considering international price movements, an IANS report said. It had added that any reduction in petrol and diesel prices at this juncture looks remote and would depend on oil prices falling consistently from the current levels and hold the trend for few days. Assuming a steady rupee, every dollar per barrel fall in crude prices could result about 40 paise per litre decrease in petrol and diesel prices and vice versa.

Oil companies resumed the dynamic pricing system for daily revision of the two auto fuels from June 7 after keeping the price unchanged for around 82 days during the lockdown. Since then, while petrol prices have risen by Rs 9.17 a litre, diesel prices have risen by Rs 12.55 a litre in the national capital.