Chief Minister Sheila Dikshit had stated that the prices will be reduced by 37 paise a litre with an aim to control the impact of the surge in the fuel prices.
But, the CM's decision was not able to be executed since some changes were necessary in the VAT Act in order to change the sale price of diesel.
Moreover, the rates of diesel price had risen to Rs 41.12 after the hike of Rs 3.37 a litre in June 2011.
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.
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