n a major development, the Arvind Kejriwal government has decided to reduce VAT on diesel from 30% to 16.75%. This will reduce the price of diesel in Delhi from Rs 82 to Rs 73.64 i.e. by Rs 8.36 per litre.

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As on Thursday morning, the price of diesel was Rs 81.94 per litre.

Diesel price in the national capital had been hiked to a record high in June after which, it became costlier than petrol. 

Here's a price comparison in different states.

State Diesel rate
Rajasthan ₹82.64/L
Madhya Pradesh ₹81.29/L
Maharashtra ₹79.81/L
Chattisgarh ₹79.68/L
Gujarat ₹79.05/L
Delhi ₹73.64/L

Notably, when diesel prices rise, everyday items become expensive as well. The price of fruits and vegetables jumps as freight charges rise. Prices of FMCG commodities may also increase.On Wednesday, the price of diesel was hiked by 15 paise per litre in Delhi, making it reach Rs 81.94 per litre. On the other hand, petrol price has been stable for some time.

Rates also differ from state to state depending on the incidence of value-added tax (VAT). Each state imposes separate VAT. Due to this, the rates of diesel and petrol are changed for consumers according to the states. The new rates come into effect from 6 am and the prices of petrol and diesel change at 6 am every day.