OREANDA-NEWS. September 2, 2011. Diesel prices are likely to come down by 37 paise a litre as Delhi government on Thursday introduced a Bill in the assembly which is aimed at slashing the rate. Delhi Chief Minister Sheila Dikshit today tabled the Delhi Value Added Tax (Second Amendment) Bill in the Assembly which will be considered for discussion tomorrow.

Following a hike in diesel prices in June, Chief Minister Sheila Dikshit had on June 27 announced slashing of the diesel rate by 37 paise a litre to cushion the impact of a rise in prices of the fuel. The decision could not be implemented as certain changes were required in the VAT Act to alter the sale price of diesel.

Diesel price had gone up to Rs 41.12 after the hike of Rs 3.37 a litre in June and it will come down to Rs 40.75 if the amendment bill is passed in the House. The city government had arrived at the figure of 37 paise for cut in diesel prices by removing the 12.5 per cent VAT component on the hike of Rs 3.37.