New Delhi, July 16 (ANI): Diesel prices would cost Rs 2.75 less in Delhi after the state government reduced the Value Added Tax (VAT) on the product to 12.5 per cent from 20 per cent.
The change in VAT will take effect on July 20.
On June 25, the Empowered Group of Ministers freed petrol from price controls and had said that diesel prices too will be market determined.
The move by the government lead to an immediate upsurge in the prices of petrol and diesel by Rs 3.50 and Rs 2 a litre, respectively.
The government also hiked the prices of kerosene by Rs.3 a litre and cooking gas by Rs.35 per cylinder. (ANI)