New Delhi: In what comes as good news for motorists in the national capital, petrol and diesel prices are likely to become cheaper in Delhi than Uttar Pradesh in the next few days, reported Times of India.
On October 5, the Yogi Adityanath-led Uttar Pradesh government had matched the Centre’s move to reduce the fuel prices by Rs 2.5 per litre, bring the effective cut to Rs 5 per litre, while Delhi Chief Minister Arvind Kejriwal denied bringing down the tax on fuel. (Check the Live Petrol And Diesel Price Here)
This had made the petrol and diesel prices in UP lower than Delhi, with motorists in the national capital, particularly those near the border of the two states, preferring to tank up in the neighbouring state where the fuel had become Rs 3 cheaper.
But now, following the continuous decline in fuel prices for the last 45 days has reduced the difference between pump rates in two states by 67 per cent for petrol and over 42 per cent for diesel in the last 30 days alone, the report added.
Times of India cited Ajay Bansal of All India Petroleum Dealers’ Association saying that the current trend of price reductions indicate that the petrol price in the national capital will fall by Rs 1.10 per litre and diesel by Rs 1.32 per litre in the next six to seven days.
This sharp movement is because of the tax system followed in the two states. While Uttar Pradesh has a fixed rate, Delhi has an ad-valorem system. The former levies a fix rate irrespective of the change in fuel prices while Delhi charges VAT as a certain percentage of the fuel price.
According to Indian Oil, since October 17, the petrol price has declined by Rs 9.59 per litre and diesel by Rs 7.56 per litre in Delhi.