The Kerala Government on Wednesday decided to reduce the retail prices of petrol and diesel by Rs 1 per litre with effect from Friday, June 1, in a bid to provide some relief to the people hit by rising fuel prices.
The slashing of the State’s tax on petrol-diesel prices by Rs 1 would lead to an annual loss to the tune or Rs 509 crore, Chief Minister Pinarayi Vijayan told newsmen on Wednesday. “Still we are doing this in a situation where the Centre is not showing the readiness to take any step to alleviate the hardships of the people,” he said.
“It is indeed difficult for Kerala, which has its own financial problems, to forgo a part of the revenue coming in through taxes on fuel. But we are doing this also in order to send a message to the Centre. People are asking us what we are doing to help the people. We tell the Centre: We are doing this. You do this too,” Pinarayi said.
The Chief Minister also said that no time-limit had been set for the Rs 1 cut in the prices of petrol and diesel. “Even if diesel and petrol prices come down tomorrow, this cut will be there,” he added. The Government decided to take the step following increasing demands for a cut in the State’s tax portion in the context of skyrocketing fuel prices.
Presently, the Kerala Government is levying 32.02 percent tax (around Rs 19.50 per litre) on petrol price and 25.58 percent (roughly Rs 15.50 per litre) on diesel.
