The Delhi government on Wednesday reduced value-added tax (VAT) on petrol to 19.40 percent from 30%.
Following the reduction, petrol rates will be cut by ₹ 8 for every liter in the national capital. The new prices will be powerful from 12 PM today.
Meanwhile, fuel prices were kept unchanged for 27 consecutive days. Earlier on November 4, the government had slashed excise duty on petrol and diesel to bring rates slightly down from the record-high levels.
In Delhi, petroleum is right now sold for ₹ 103.97; while diesel rate remained at ₹ 86.67, as per Indian Oil Corporation. In Mumbai, petroleum is retailed at ₹ 109.98 per liter; while diesel is being sold at ₹ 94.14 per liter.
Among the metro cities, fuel rates are the highest in Mumbai. The rates vary across the states due to value-added tax or VAT.
State-run oil refiners, for example, Indian Oil, Bharat Petroleum, and Hindustan Petroleum revise the fuel rates on a daily basis, by taking into account the crude oil prices in the international markets, and the rupee-dollar exchange rates.
Globally, oil prices rose more than 2%, recouping some of the steep losses from the previous session, as major producers prepared to discuss how to respond to the threat of a hit to fuel demand from the Omicron variant.
Brent unrefined fates rose $1.90, or 2.7 percent, to $71.13 a barrel, after a 3.9 percent droop on Tuesday. U.S. West Texas Intermediate (WTI) unrefined fates rose $1.71, or 2.6 percent, to $67.89 a barrel, after a 5.4 percent drop on Tuesday.