Delhi Diesel price to reduce by a huge margin
Diesel engines are costlier but Diesel fuel is available cheaper. This is the main rule. Petrol engine, on the other hand, costs less upfront but the fuel is more costly. However, the current pandemic has forced all sorts of contradicting things taking place in the country.
In Delhi NCR, the prices of Diesel have been high above the petrol for quite some time now. But now the Government has decided to take some action. Read below about Delhi Diesel price to reduce by a huge margin.
What is the plan?
There will be a price cut in the prices of Diesel fuel only available in Delhi NCR. Delhi Chief Minister Arvind Kejriwal said that the rate of VAT on diesel will be cut down to 16.75 per cent from 30 per cent.
That is a 13.25 per cent decrease in the price of fuel. The existing rate of Diesel is Rs.82 per/litre which will drop to Rs.73.64 per/litre after reduction. Customers will receive a cash benefit of Rs.8.36 per/litre.
What about taxes?
The Indian Oil Corporation provided a tax breakup of Diesel prices in Delhi NCR as of July 16, 2020.
The price of Diesel before taxes and seller commission stands at Rs.27.82 per/litre.
The central government took a tax of Rs.31.83 per/litre while the state government took a tax of Rs.
18.98 per/litre.
When did the price increase?
The Delhi government announced a steep hike on VAT (tax on fuel) from 16.75 per cent to 30 per cent in the month of May. The current solution is just the reversal of the problem. If you think you are getting a deal, think again!
The VAT on petrol had been hiked too from 27 per cent to 30 per cent. Petrol cars are majorly used by consumers in Delhi NCR region after the 10-year and BS6 rule.
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