Petrol rates which cross the psychological remark of 100 Rs is cut down to 8 Rs per litre. The value added tax (VAT) which is sliced from 30 percent to 19.40 percent.
Once the VAT is cut off, the prices cut down from 103 Rs per litre to 95 Rs per litre. Vat percentage is directly proportional to the price value. Henceforth with decrease in VAT value the price also came down.
Arvind Kejriwal with his cabinet members decided to slash the price down to give relief to the vehicle owners. The new rates came into action from today itself.
How the petrol rates change
Oil refiners ruled by government such as Indian Oil (IOC) , Bharat Petroleum (BPCL) and Hindustan Petroleum( HPCL) keep changing their rates daily. The rates depend upon the crude prices in foreign markets and the rupee- dollar exchange rates.
The prices reached the highest mark due to the surge in rates of dollar and the crude prices went all time high after 2018. Our government has to tackle with the prices of the fuel daily to keep the track of crude barrel rate in international markets.
Previous petrol rate cut
Previously on the Diwali eve the central government cut down the highest ever deduction in excise duty.
The central government cut the duty on petrol rates by Rs 5 per litre and on diesel by Rs 10 on November 3. On November 4 it was Rs 103.97 after the central orders.
Record petrol rate.
The highest petrol rate of Rs 111.1 in Rajasthan followed by our capital city 109.98 a litre. After reducing the excise duty, the union government also asked states government to reduce the VAT on the fuel to give relief to the owners.
But our capital city is the first one to reduce the price. After the statement of Union government hoping that other states and union territories will also cut down the tax rates.