Oil marketing companies (OMC) reduced price of petrol and diesel by Rs 2 per litre, excluding State levies, from July 16. Considering State levies, price of petrol was cheaper by Rs 2.55 a litre in both Mumbai and Chennai, while in Kolkata it was cheaper by Rs 2.52 a litre. However, in Delhi petrol will cost Rs 0.28 a litre more due to increase in VAT rates by the state government from 20% to 25%.
On the other hand, diesel price in Mumbai, Chennai and Kolkata reduced by Rs 2.49 a litre, Rs 2.44 a litre and Rs 2 a litre. Meanwhile in Delhi, price of diesel slashed by Rs 0.50 a litre. Reduction in price of diesel was less compared with other 3 metros due to hike in VAT from 12.5% to 16.6% by the State government.
Had the VAT rates in Delhi remained unchanged, the reduction in retail selling price of petrol and diesel, would have been Rs. 2.43 a litre and Rs. 2.25 a litre respectively.
