The Kerala government has decided to reduce prices of petrol and diesel by 1 rupee from Friday to control rising fuel prices, Chief Minister Pinarayi Vijayan told ANI on Wednesday. He said the government would reduce the state tax imposed on petrol and diesel to bring down prices. His statement came after the one-paisa-per-litre cut in fuel prices announced earlier in the day after 16 consecutive hikes.
The decision was taken during a Cabinet meeting, however the rate of tax cut has not yet been finalised. Vijayan said the onus was now on the central government to effect a price reduction from its end, reported Hindustan Times.
Vijayan also said the decision will reduce the annual tax revenue of the state by Rs 509 crore, reported India Today
On Wednesday, the Indian Oil Corporation announced on its website that petrol prices would be lower by 60 paise a litre and diesel by 56 paise. However, both rates were later revised on the company’s website to reflect a price cut of only one paisa a litre.
In the state capital Thiruvananthapuram, a litre of petrol cost Rs 82.61 on Wednesday, while a litre of diesel cost Rs 75.19, according to IOC website. As of November 2017, Kerala charged 31.8% tax on petrol and 24.52% on diesel. The state also imposes also imposes a 1% additional cess, reported Manorama Online. The state government earned Rs 7,795 crore from fuel taxes in the 2017-’18 financial year.