New Delhi: The Kerala government on Saturday announced a cut in tax on the prices of petrol and diesel by Rs 2.41 and Rs 1.36 per litre respectively, following the reduction of fuel prices by the Centre. Announcing the cut on state tax, Kerala Finance Minister K N Balagopal said the Union government has partially reduced the huge tax imposed by it. He, however, welcomed the Centre's decision.
"The Union government has partially reduced the huge tax on petrol and diesel. Kerala government welcomes this decision," Balagopal said in a statement. "...state government will reduce state tax on the price of petrol and diesel by Rs 2.41 and Rs 1.36 per litre respectively," he said.
The Union government on Saturday cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 per litre to give relief to consumers battered under high fuel prices that have also pushed inflation to a multi-year high. The excise duty cut will translate into a reduction of Rs 9.5 a litre on petrol and Rs 7 a litre in diesel after taking into account its impact on other levies.
Fuel prices in Odisha is also expected to go down from Sunday. With Odisha also reducing taxes on petrol and diesel by Rs 2.23 and Rs 1.36 a litre, the new fuel price from 6 AM on Sunday in the state will be Rs 102.25 and Rs 94.86 respectively. This was estimated by the All India Petroleum Dealers Association. "Though the centre cut the excise duty by Rs 8 per litre of petrol, the actual price reduction in Odisha will be translated into Rs 10.23 per litre", said association secretary Sanjay Lath. Similarly, the price of diesel will be less by Rs 7.36 per litre, he said.
"On petrol, the central excise duty will be reduced by Rs 8 per litre while the state will automatically forgo another Rs 2.23 per litre on petrol and Rs 1.36 per diesel. Therefore, the actual reduction will be Rs 10.23 and Rs 7.36 on petrol and diesel respectively," he added. The per litre petrol rice remained Rs 112.48 and diesel at Rs 102.22 in Bhubaneswar on Saturday. Lath said the Centre's action will certainly bring relief to the people of the country. "If the government would have taken a few days earlier then the price of many things would not have skyrocketed due to rise in transport cost, he said.
Karnataka Chief Minister Basavaraj Bommai on Sunday said his government will consider a further cut in fuel tax, following the Centre's decision to reduce excise duty on petrol and diesel. "The decision (Centre's) has come on Saturday night, let's see, we will consider it," Bommai said in response to a query on any decision from the state government to further reduce petrol and diesel rates, following the Centre's decision.
Registering a reaction to the decision, Bahujan Samaj Party chief Mayawati said that it was the duty of not only Uttar Pradesh but also of other states to immediately announce a cut in VAT on fuel. "After a long time, the Centre has given some relief by reducing charges on petrol-diesel to the people who were forced to live a miserable life due to rising inflation, poverty, unemployment and stress. Now it is the responsibility of UP and other states to follow the advice of the Centre and immediately reduce VAT (on diesel and petrol)," Mayawati said in a tweet in Hindi.
Also read: Petrol price cut by Rs 8.69, diesel by Rs 7.05
(With agency inputs)
