New Delhi: The price of petrol which has come down to 71.16 per litre in the city could further decrease by 92 paisa when a proposal by Delhi Government to cut VAT on increased component of the fuel comes into effect.

Following the announcement of the reduction by the Oil companies, petrol price has come down by Rs 2.02 per litre from Rs 73.18.

Petrol would cost Rs 70.24 when Delhi Government implements its decision to forego VAT on the hiked price of the fuel.

Presenting the budget on Monday last, Chief Minister Sheila Dikshit had announced slashing the VAT on the hiked price of petrol.

The budget will be taken up for passage on Monday and once proposal is cleared, the government would issue a notification effecting the cut in prices.

As per the earlier calculation, forgoing the VAT on increased price of petrol would have resulted a cut in petrol price by Rs 1.26.

But after the cut in petrol prices by Rs 1.68 by Oil companies, the reduction in VAT on per litre of petrol would be 92 paisa.

In her budget speech, Chief Minister Sheila Dikshit had said that the price of petrol in Delhi is the lowest among all the metro cities and lower compared to the price in neighbouring cities of Haryana and Uttar Pradesh.

"I have deeply considered the matter and am of the view that the citizens of Delhi need to be provided some relief," she had said.


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