In a move to provide relief to the Consumers, Delhi government today announced to slash the value added tax (VAT) on diesel to 12.5 per cent from the existing 20 per cent which will be effective from 20th of this month. It will bring down the fuel prices by 2.50 rupees per litre to 37.60 rupees per litre in the city. <br/><br/>The decision to decrease VAT on diesel was taken at a cabinet meeting presided over by Chief Minister Sheila Dikshit. Later talking to reporters, Mrs. Dikshit s said that the rate has been reduced as Delhi government was losing on revenue from diesel after it increased VAT on it in last budget and the people were preferring to go to the neighbouring states like Haryana and UP to purchase diesel. <br/><br/>Earlier Delhiites were shelling out Rs 40.10 per litre on diesel after its prices were deregulated by the Centre.