Due to similar combustion characteristics, ethanol can be used in petrol engines. While some engines use petrol blended with a small percentage of ethanol, others are ethanol-only.
At a cabinet meeting chaired by Chief Minister Arvind Kejriwal, it was decided that the Value-Added Tax (VAT) on petrol will be reduced from the present 30 per cent to 19.4 per cent, leading to a cut of around Rs 8 per litre.
Petrol price has been hiked on 25 occasions since September 28, when a three-week-long hiatus in rate revision ended. In all, prices have gone up by Rs 8.15 a litre. Diesel rates have been increased by Rs 9.45 per litre in 28 hikes since September 24.