Delhi government today proposed to reduce the Value Added Tax, VAT, on recently increased price of Petrol by 20 percent in its budget for the year 2012-13. Chief Minister, Sheila Dikshit announced this while presenting the budget in Delhi Assembly. This will result in reducing the petrol price by 1.26 rupees per litre.

Petrol will now cost 71.92 rupees per litre after the cut. Earlier, state-run oil marketing firms had announced the steepest-ever hike of about 7.50 rupees per litre in the petrol prices. In the budget, however the state government proposed a fresh five per cent VAT on CNG.

In the Assembly, the Chief Minister also proposed the budget estimate of 33,436 crore rupees for the year 2012-13. Out of which 15,000 crore rupees has been proposed for the plan allocation and 18,268 crore rupees for the non-plan allocation. Tax collection pegged at 26,150 crore rupees.