The Congress-led government in New Delhi on Monday reduced petrol prices, but increased the cost of CNG and tobacco. The petrol price was reduced by Rs1.26 from the hiked rate of Rs73.18 per litre. Now, petrol in Delhi will cost Rs71.82. 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 per cent 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 cut, 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 per cent 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 per cent and 5 per cent respectively on CNG.” She justified the move by saying that CNG rates in other states are much higher.