Amid soaring fuel prices, the CPI(M)led LDF government in Kerala today decided to reduce petrol and diesel prices in the state by Rs one per litre from June one by slashing its sales tax.
A decision in this regard was taken at the state cabinet, which met here.
Briefing reporters this evening, Chief Minister Pinarayi Vijayan said the government decided to bring down the fuel price to give some relief to the people, who were reeling due to the daily hike in fuel prices.
The new price will come into effect from this Friday, he said.
Reduction in price would mean a loss of Rs 509 crore per year to the state exchequer, the chief minister said.
The decision to reduce fuel prices was taken despite the state facing severe fianancial difficulties, Vijayan said.
The Centre must take a cue from the state and bring down the the fuel prices as it was causing severe hardship to the common man, he said.
Even as the International crude oil prices are coming down, fuel prices in the country were going up, the chief minister said, adding, the centre should bring down petrol and diesel prices.
Kerala Finance minister Thomas Isaac said this was the LDF government's second anniversary gift to the people.
In a tweet, he said "the sales tax on petrol reduced by 1.69 per cent and diesel by 1.75 per cent in Kerala. Retail prices to decline by Rupee one.
The state govt to forego revenue of Rs 500 crore annually. Now will PM Modi be willing to roll back his tax hike?"
In another tweet, Isaac said "Some statistics for my friends in the opposition, particularly KC Joseph (Cong) who wish to trivialise our reduction in the tax rates on petroleum products.
What was your record? When you came to power in 2011 the tax on petrol was 26.4 per cent. When you stepped down it was 32.4.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)