Minor drop petrol, diesel prices in Delhi

New Delhi, June 13: Petrol and diesel prices are set to fall by 67 and 22 paise per litre respectively in the capital as Delhi Government today decided to forego Value Added Tax (VAT) on the four and two rupee hike effected by the Centre on these products on June 5.

The cabinet decision would take effect after four-five days on conclusion of certain ''procedural formalities'', Finance Minister A K Walia told reporters.

Petrol prices had climbed to Rs 47.51 a litre while diesel was costing Rs 32.45 a litre in the capital after the latest price hike announced earlier this month. Petrol will now cost Rs 46.84 and diesel Rs 32.23 per litre after today's decision.

The cabinet decided to forego on the increased price the VAT of 20 and 12.5 per cent that it charges on petrol and diesel respectively.

Dr Walia said the Government would suffer a revenue loss of Rs 102 crore because of the decision. To a question, he said there was no scope for reduction in the price of Compressed Natural Gas (CNG) since it was not taxed due to the government's policy to promote the environment-friendly fuel.

Decks were cleared for today's cabinet move last week itself when the Centre made it clear that there would be no rollback of the price hike decision and the Congress asked party-led state governments not to levy sales tax on the increased petrol and diesel prices.

Similar relief to consumers have already been announced by the Maharashtra, Goa, Andhra Pradesh, Tamil Nadu, Himachal Pradesh and Punjab governments.

Reached for comments, a spokesman for All India Motor Transport Congress -- which had called today's all-India strike by truckers in protest against the fuel price hike -- laughed off the Delhi government decision.

''There have been six fuel price revisions since the Congress-led UPA came to power at the Centre. Diesel prices have gone up by Rs 11.30 during this period. Why can't the Sheila Dikshit government forego VAT on this increased amount?,'' AIMTC Advisor J M Saxena asked.

''Before the latest hike was announced, when diesel was costing Rs 30.45 a litre in the capital, the ex-refinery price of the produce was Rs 21.31. The rest was tax that the government was charging,'' he said.

The AIMTC says that to provide real ''relief to common man'' the Government would have to give up excise, customs and sales tax on petro products.

The Government had increased the prices of petrol and diesel earlier this month to partially offset a Rs 73,500 crore burden on oil companies. The prices of LPG and kerosene were left untouched.

UNI

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