New Delhi: The Delhi government Wednesday reduced value-added tax (VAT) on petrol to 19.40 per cent from 30 per cent. Following the reduction, petrol rates will be cut by ₹ 8 per litre in the national capital. The new prices will be effective from midnight today.
Meanwhile, fuel prices were kept unchanged for 27 consecutive days. Earlier November 4, the government had slashed excise duty on petrol and diesel to bring rates slightly down from the record-high levels.
In Delhi, petrol is currently sold for ₹ 103.97; while diesel rate stood at ₹ 86.67, according to Indian Oil Corporation. In Mumbai, petrol is retailed at ₹ 109.98 per litre; while diesel is being sold at ₹ 94.14 per litre.
Among the metro cities, fuel rates are the highest in Mumbai. The rates vary across the states due to value-added tax or VAT.
State-run oil refiners such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum revise the fuel rates on a daily basis, by taking into account the crude oil prices in the international markets, and the rupee-dollar exchange rates.
Globally, oil prices rose more than 2 per cent, recouping some of the steep losses from the previous session, as major producers prepared to discuss how to respond to the threat of a hit to fuel demand from the Omicron variant.
Brent crude futures rose $1.90, or 2.7 per cent, to $71.13 a barrel, after a 3.9 per cent slump on Tuesday. U.S. West Texas Intermediate (WTI) crude futures rose $1.71, or 2.6 per cent, to $67.89 a barrel, after a 5.4 per cent drop Tuesday.