OREANDA-NEWS. September 6, 2011. Diesel prices will come down by 37 paise a litre in the city in a day or two as Delhi Assembly today passed a Bill aimed at slashing the rate. The Delhi Value Added Tax (Second Amendment Bill) 2011 was passed by the Assembly.

Following a hike in diesel prices in June, Chief Minister Sheila Dikshit, on June 27 had announced slashing the diesel rate by 37 paise a litre to cushion the impact of 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.

A senior official said the new rate will come into effect in a day or two following issuance of a notification by Lt Governor Tejendra Khanna. 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.