In a relief to the people of Tamil Nadu from rising fuel prices, Finance Minister P Thiaga Rajan has announced a state tax cut on Petrol. Price of petrol will reduce by Rs 3 once the cut is implemented.
The cut will result in a loss of Rs 1,160 a year to the state, Finance Ministry said on August 12.
"This Government has decided to reduce the effective rate of tax on petrol by Rs 3 per litre and thereby provide major relief to the toiling working-class people in the State. This measure will result in a loss of revenue of Rs.1,160 crore a year," the Ministry said in the Revised Budget estimates document.
Fuel prices reached record highs across all metros after incessant hikes in rates since May. The price increase since May 3 has pushed petrol rates above the Rs 100-a-litre mark in most places in 15 states including Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Odisha, Tamil Nadu, Kerala, Bihar and Punjab and at a couple of districts in Uttar Pradesh and Haryana.
In Chennai, a litre of petrol retails at Rs 102.49, while diesel costs Rs 94.39 per litre in Tamil Nadu’s capital.
Since April 2020, petrol prices have increased by Rs 32.25 per litre from Rs 69.59 a litre to Rs 101.84 a litre now in Delhi.
Similarly, diesel prices during the period have increased by Rs 27.58 per litre from Rs 62.29 to Rs 89.87 a litre in the national capital.