Diesel now costs Rs 37.40 a litre in Delhi

The cost of diesel in the national capital came down to Rs 37.40 a litre today as the Delhi government's decision to roll back value added tax (VAT) on the fuel from 20 per cent to 12.5 per cent came into effect.

The cost of diesel in the national capital came down to Rs 37.40 a litre on Tuesday as the Delhi government's decision to roll back value added tax (VAT) on the fuel from 20 per cent to 12.5 per cent came into effect.

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The decision has led to a slashing of the price of diesel by Rs 2.70 a litre.

Petrol pump owners said they will wait for around 10 days to get commuters reaction in the border areas.

"Our profit depends on the sale of diesel in bordering areas. It will take some time for us to know how people react to the new diesel rates here as Haryana still offers it a rupee less than Delhi," a member of the Delhi Petrol Dealers Association said.

In March, the government had increased the VAT on diesel from 12.5 per cent to 20 per cent to mop up revenue for the increased expenditure on infrastructural projects for the Commonwealth Games 2010.