Kerala cuts tax on petrol by ₹2.41, diesel by ₹1.36

KERALA GOVERNMENT WELCOMES CENTRE’S DECISION, BALAGOPAL SAID IN A STATEMENT.

Press Trust of India

THIRUVANANTHAPURAM: The Kerala government on Saturday announced a cut in tax on the prices of petrol and diesel by ₹2.41 and ₹1.36 per litre, respectively, following reduction of fuel price by the Centre.

The central government on Saturday reduced excise duties on petrol by ₹8 a litre and diesel by ₹6 a litre on Saturday.

Soon after the decision, Kerala finance minister KN 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 ₹2.41 and ₹1.36 per litre respectively,” he added.

Meanwhile, a senior Maharashtra government official said the state government may not reciprocate the central government’s decision to cut excise duty on fuels. “There is no such proposal for a reduction,” a senior official from the state finance department said on the condition of anonymity.

Uday Lodh of the Federation of All Maharashtra Petrol Dealers Association said that the price difference between the petrol and diesel sold in Maharashtra and in neighbouring states led to motorists preferring petrol pumps across the state’s borders.

“Maharashtra shares boundaries with seven states. Petrol prices are lower in all of them, except Chhattisgarh. This has led to heavy vehicles and motor transport operators filling diesel there,” he added, charging that the Maharashtra government was dithering in reducing taxes as the union government would get some of the credit.

Lodh said petrol prices in Goa were lower by around ₹14 per liter compared to Maharashtra.