Delhi government today slashed the VAT on petrol upto 20 percent in the national capital. This will result in reducing the petrol price by 1.26 rupees. This was announced by the Chief Minister Sheila Dikshit in the ongoing budget session of the Assembly. Earlier, State-run oil marketing firms had announced the steepest-ever hike of about 7.50 rupees per litre in the petrol prices.