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New Delhi: The Delhi government decreased the value-added tax (VAT) on petrol from 30% to 19.40% on Wednesday.
Petrol prices in the national capital will be slashed by Rs 8 per litre as a result of the reduction. The new prices will go into effect at 12 a.m. today.
Meanwhile, fuel prices were kept unchanged for 27 consecutive days. Earlier on November 4, the government had slashed excise duty on petrol and diesel to bring rates slightly down from the record-high levels.
According to Indian Oil Corporation, the current price of petrol in Delhi is Rs 103.97, while the price of diesel is Rs 86.67. Petrol is sold for Rs 109.98 per litre in Mumbai, while diesel is sold for Rs 94.14 per litre.
Mumbai has the highest fuel prices among metro cities. Because of the value-added tax, or VAT, the rates differ by state.
State-run oil refineries such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum adjust fuel prices on a daily basis, taking into account international crude oil prices and rupee-dollar exchange rates.
As major producers prepared to negotiate how to respond to the possibility of a cut to fuel demand from the Omicron type, oil prices gained more than 2% globally, recouping some of the sharp losses from the previous session.
After a 3.9 percent drop on Tuesday, Brent crude futures rose $1.90, or 2.7 percent, to $71.13 a barrel. After a 5.4 percent plunge on Tuesday, US West Texas Intermediate (WTI) crude futures gained $1.71, or 2.6 percent, to $67.89 a barrel.