Petrol to cost R1.26 less in Delhi; Reddy not to raise kerosene, LPG, diesel prices

Delhi on Monday became the third state to reduce value-added tax on petrol.

May 29, 2012 03:03 IST

Delhi on Monday became the third state to reduce value-added tax on petrol. Petrol will now come for R71.92 per litre or R1.26 less, thanks to the full exemption of 20% VAT levied on the increased price of petrol. Last week?s sharp petrol price hike of R7.50-8 had triggered nationwide protests, prompting Kerala and Uttarakhand to reduce state-level taxes.

The relief on petrol in Delhi was, however, offset by a fresh 5% VAT on CNG, which powers a large number of vehicles in the city.

Meanwhile, the Centre said it had no immediate plan to raise the prices of diesel, kerosene and LPG, even as policy makers tried to control the political damage from the steepest price revision in petrol last week. Petroleum minister S Jaipal Reddy said: ?We are not considering a hike in the prices of diesel, domestic LPG and kerosene. It is out of question right now.?

This article was first uploaded on May twenty-nine, twenty twelve, at three minutes past three in the night.