On Friday, Jul 16 Delhi government announced the plan to decrease the value added tax (VAT) on the fuel from Jul 20 which will bring down the price of diesel.
"We have decided to decrease the VAT on diesel from 20 percent to 12.5 percent from Jul 20. This is likely to bring down the prices of the fuel in the capital," said Sheila Dikshit, Delhi Chief Minister.
In Mar 2010, Delhi government increased the VAT on fuels from 12.5 percent to 20 percent to meet the increased expenditure on infrastructural projects related to Commonwealth Games 2010.
Reduction of VAT will also help the petrol pump owners, who were protesting against the increased VAT, to overcome their losses.