VAT hike makes diesel costlier than petrol in Delhi: IOC
NEWDELHI:Diesel price for the first time in living memory crossing the rate of petrol in the national capital on Wednesday was a result of a steep hike in VAT by the state government, Indian Oil Corp (IOC) Chairman Sanjiv Singh said, pointing to lower rates across other cities.
According to a price notification of state oil marketing companies, petrol price was unchanged after 17 consecutive increases, while diesel rates were hiked by 48 paise per litre, the 18th daily increase in a row across the country. Diesel now costs ₹79.88 per litre in Delhi as compared to petrol price of ₹79.76. Rates differ from state to state depending on the incidence of VAT.
“The Delhi government had increased VAT on petrol from 27 per cent to 30 per cent and that on diesel from 16.75 per cent to 30 per cent on May 5,” Singh told reporters here. This massive hike in VAT resulted in rates going up by ₹.67 per litre for petrol and by a record ₹7.10 for diesel on one day.