Tamil Nadu: Petrol to be cheaper by Rs 3 as Stalin govt partially delivers on poll promise

In a welcome relief for residents in Tamil Nadu, state Finance Minister Palanivel Thiaga Rajan announced that the newly elected DMK government has decided to cut tax on petrol by Rs 3 per litre.

“I am happy to inform the House that 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 finance minister said as he presented his maiden budget to the Assembly on Friday.

Apart from the base price of petrol, the Union and state governments both add their respective taxes. The central excise duty on petrol was hiked from Rs 19.98 per litre to Rs 32.9 last year. As of October 4, 2017, the state VAT imposed on petrol in Tamil Nadu was 25 per cent.

The move comes amid India witnessing a steep rise in petrol and diesel this year. Petrol prices were increased on 63 occasions and diesel on 61 so far this year. However, the prices have remained unchanged for the past 25 days.

With the announcement, the Stalin government has partially delivered on its poll promise. Among other assurances, the DMK had promised in the run-up to the April 6 Assembly polls that it would reduce prices of petrol and diesel by Rs 5 and Rs 4 respectively.