Dikshit, without specifying the quantum of the possible relief, said government was examining the issue and would do something similar to slashing the state tax when price of diesel was hiked last year.
"We had given relief last time when prices (of diesel) was hiked. We will do something this time as well," Dikshit said hinting that the cut in rates may be announced in the annual budget of Delhi which will be presented by her on Monday.
"Wait till Monday for my budget," Dikshit said replying to questions on whether her government was planning to provide some relief to people from Rs 7.54 hike per litre of petrol.
Following a hike of Rs 3.37 per litre of diesel in June last year, Delhi government had slashed the rate by 37 paise removing the 12.5 percent VAT component on the hiked amount.
Officials indicated that government may cut the 20 percent VAT component on the hiked amount of Rs 7.54 which will bring down the rate of per litre of petrol by Rs 1.50.
After the hike on Wednesday, the petrol price had gone up to Rs 73.18 per litre from Rs 65.64.
If the Delhi Government cuts the VAT on the increased amount, then the prices of per litre of petrol will come down to Rs 71.68.
The Congress governments in Kerala and Uttarakhand have already decided to waive off VAT on the increased amount.
Dikshit had Thursday night also indicated that Delhi government may consider cutting VAT on petrol. She, however, justified the steep hike saying oil companies were incurring huge losses and the hike was necessary.