<br/>In a move to provide relief to the Consumers, Delhi government has 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 Rs 2.50 per litre to Rs 37.60 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, Dikshit said the rate had been reduced as the 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.