From Monday, buy petrol at Rs. 70.26/litre in Delhi

Rain may still be elusive but this weekend has brought some good news for Delhiites.

Rain may still be elusive but this weekend has brought some good news for Delhiites.

The Delhi government has finally waived off the value-added tax (VAT) of Rs. 5 that the central government had increased on petrol in May this year, reducing its price by 92 paise per litre.

Petrol will now cost Rs. 70.26 per litre in the Capital and the new price will come into effect from Monday.

Delhi Chief Minister Sheila Dikshit had announced complete waiver on the increased price of petrol in her budget speech on May 28. It took the government almost three weeks to issue the notification.

Senior Delhi government officials said the waiver of 92 paise will be reduced if the petrol prices also reduce in the next few days.

"Our promise to Delhi is to provide relief from the petrol hike. If the petrol prices are further reduced then the tax benefit will also come down accordingly," a senior Delhi government official said. The Delhi government, however, has withdrawn tax waiver on diesel which was announced in September 2011. Diesel will now go up by 38 paise and will cost Rs. 40.29 per litre.