Days after diesel prices peaked and the fuel cost more than petrol for the first time in Delhi's history, the State Chief Arvind Kejriwal-led government has decided to reduce the value added tax (VAT) on diesel, which will substantially lower the price of diesel in the nation's capital.
According to Kejriwal, the city government's cabinet on Thursday decided to reduce the VAT from 30% to 16.75%. This will reduce the price of diesel in Delhi from INR 82 ($1.10) to INR 73.64 ($0.98) per litre.
“This is one of the several measures that have been taken by our government to revive Delhi’s economy. This step will bring relief to the people of the national capital. Earlier this month, we had launched a portal to connect job seekers with potential employers,” Kejriwal said.
The state chief has further mentioned that he would be connecting with several industry groups and experts to discuss more ways to revive the national capital’s economy.
During India's COVID-19 national lockdown period, which commenced on 25 March, Indian oil marketing companies had held back any increase in the retail price of petrol or diesel. But since 7 June (six days after the first stage of the end of lockdowns) they started revising the retail rates in line with the costs after a 82 day break amidst the COVID-19 pandemic. The unprecedented price hike had triggered protests from the opposition parties and general public.