Petrol and Diesel Prices to be cut down

Kerala, May 29: In a major relief to people amidst soaring fuel prices, Kerala government has decided to effect a reduction of Re 1 in petrol and diesel prices.

At a press conference today afternoon, Chief Minister Pinarayi Vijayan said prices on petrol and diesel will be reduced by Re 1 in the state.

This will bring down the annual tax revenue of the state by Rs 509 crore, Vijayan added.

This move will be a huge relief to the people in Kerala who have been struggling with the sky-rocketing fuel prices.

The state government decision comes in the wake of fuel prices going up steadily in the last two weeks after Karnataka election.

Today morning, though the oil companies announced a decrease in the petrol price by 0.60 paise, at 11 am it was revised to just 0.01 paise. Petrol is priced at Rs 82.57 per liter and Diesel at Rs 75.14 per litre.

In the cabinet meeting, Kerala Finance Minister, TM Thomas Issac proposed the idea to slash state taxes rate, which got approved by the chief minister.

Interestingly, Kerala is the first state to take up such initiative in order to bring down the fuel prices.

Though the actual figure of tax rate cut is yet to be announced, it is expected that the state may cap their revenue at the pre-Karnataka election rates.

Currently, Kerala is the 3rd most highly fuel priced state after Maharashtra and Punjab. Kerala charges 32.02 per cent on petrol and 25.5 percent on diesel.