Petrol to be cheaper, CNG costlier in Delhi

Monday May 28, 2012 09:24:51 PM, IANS

New Delhi: Eyeing next year's assembly polls, Delhi's Congress government Monday slashed petrol prices, but increased the cost of CNG and tobacco.

The petrol price was slashed by Rs.1.26 from the hiked rate of Rs.73.18 per litre. Now, petrol in Delhi will cost Rs.71.82.

Making the announcement while presenting the budget for 2012-13, Chief Minister Sheila Dikshit said: "At present the price of petrol in Delhi is the lowest among all the metros and lower compared to the rates in the neighbouring states of Haryana and UP (Uttar Pradesh) too."

"I propose to exempt the recently announced increase in the price of petrol from the levy of 20 percent VAT. This would cushion the impact of the increase to a considerable extent," said Dikshit, who also holds the finance portfolio.

But, if petrol prices have been slashed, compressed natural gas (CNG), that powers auto-rickshaws and buses and most taxis, was made costlier.

"I propose to levy at a moderate rate of 5 percent on CNG used in the transport sector. It is relevant to mention that the neighbouring states of Uttar Pradesh and Haryana are already levying VAT of 12.5 percent and 5 percent respectively on CNG."

She justified the move by saying that CNG rates in other states are much higher.

Dikshit, who has been in power for the past 14 years, faces a litmus test in next year's assembly elections. The Congress got a major drubbing in the recently held elections in to the trifurcated the Municipal Corporation of Delhi.

The Delhi budget is pegged at Rs.33,436 crore, over last years's Rs.27,067 crore.

The plan outlay will be Rs. 15,000 crore and the non-plan expenditure has been pegged at Rs. 18,268 crore.

A major share - Rs.3,372 crore - has been allocated to the transport sector.

Keen to provide a better health system, the Delhi government also allocated Rs.2,124 crore for upgrading dispensaries and hospitals and building better healthcare infrastructure.

"Our approach in the 12th (Five Year) Plan is to increase the bed availability to three beds to per thousand population," Dikshit said.

The budget also offers sops for women: hairpins, hairbands, hairclips, safety pins, and saree falls have been made cheaper.

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Picture of the Day

Chairperson National Advisory Council Mrs. Sonia Gandhi paying homage at the Samadhi of the former Prime Minister, Pandit Jawaharlal Nehru on his 48th death anniversary, at Shanti Van, in Delhi on May 27, 2012. Union Minister for Urban Development Kamal Nath and Chief Minister of Delhi, Mrs. Sheila Dikshit are also seen.