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Petrol, diesel prices on December 2: Petrol price drops by Rs 8.56/litre in Delhi post VAT cut

The price of petrol in Delhi reduced by Rs 8.56 per litre as the Delhi government's VAT cut came into effect at midnight. Fuel prices, including the cost of diesel in Delhi, remained unchanged in all other states and UTs for the 28th day in a row after the Centre's excise duty cut.

At a cabinet meeting chaired by Chief Minister Arvind Kejriwal, it was decided that the value-added tax (VAT) on petrol will be reduced from 30 percent to 19.4 percent, leading to a cut of around Rs 8 per litre.

The petrol and diesel prices remained unchanged in Kolkata at Rs 104.67 per litre and Rs 89.79 per litre, respectively.

Chennai retailed a litre of petrol at an unchanged price of Rs 101.40. Diesel price also remained unchanged at Rs 91.43 per litre.

The excise duty cut was the highest-ever reduction in excise duty. Reducing the excise duty, the union government also urged states to commensurately reduce or value-added tax on petrol and diesel to give relief to consumers.

Following this, 28 states and union territories have cut VAT to give further reprieve to consumers battered by record-high retail prices. The states/UTs that extended additional VAT benefits are Delhi, Ladakh, Karnataka, Puducherry, Jammu and Kashmir, Sikkim, Mizoram, Himachal Pradesh, Daman and Diu, Dadra and Nagar Haveli, Chandigarh, Chhattisgarh, Assam, Madhya Pradesh, Tripura, Gujarat, Nagaland, Punjab, Goa, Meghalaya, Odisha, Rajasthan, Arunachal Pradesh, Manipur, Andaman and Nicobar, Bihar, Uttarakhand, Uttar Pradesh and Haryana.

States that have so far not lowered VAT include Congress and its allies ruled Maharashtra, Jharkhand and Tamil Nadu. TMC-governed West Bengal, Left-ruled Kerala, TRS-led Telangana and YSR Congress-ruled Andhra Pradesh have also not cut VAT.

Congress-ruled Punjab has seen the biggest reduction in the price of petrol in the country after it cut local sales tax or VAT the most, while the UT of Ladakh witnessed the largest reduction in diesel rates for the same reason.

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