Petrol

New Delhi, June 13 (UNI) The Delhi government today decided to reduce prices of petrol and diesel in the national capital by 67 paise and 22 paise per litre respectively by not charging VAT on the increased price of the petroleum products.

''We have decided not to charge the Value Added Tax component on the recent hike in petrol and diesel prices,'' state Finance Minister A K Walia said after a cabinet meeting.

The reduced prices would become effective sometime this week as certain procedural formalities had to be completed before the revised taxes were implemented, he said.

The Delhi government would be forgoing a revenue of Rs 102 crore by this move, he added.

Prices of petrol and diesel had increased by Rs four and two respectively on midnight of June 5 after an annoucement by the centre. And the state government levied tax on petrol at the rate of 20 per cent and diesel 12.5 per cent.

There was no scope of change in the price of CNG as Delhi government did not charge any tax on CNG. The price of the gas had also increased by Rs 1.80 per kg from midnight June 5.

UNI VN VA DS1330