Kerala became the first state in the country that has decided to take a hit on its revenue.
Thiruvananthapuram:
Petrol and diesel prices in Kerala today came down by Re 1 each following the state government's decision to reduce cess. While petrol sold for Rs 81.40 per litre and diesel stood at Rs 74.05 a litre. The decision to reduce sales tax was taken during cabinet meeting chaired by Chief Minister Pinarayi Vijayan on Wednesday.
Mr Vijayan had said that the government had decided to bring down the fuel prices to provide relief to the people, who were being burdened by the daily hike in prices of petroleum products.
The move, however, would result in a revenue loss of Rs 509 crore per year to the state exchequer, the chief minister had said.
With this, Kerala became the first state in the country that has decided to take a hit on its revenue to mitigate the impact of higher global prices on customers.
The fuel prices in the country have been increasing consistently over two weeks now. Before that, fuel retailers like Indian Oil and Hindustan Petroleum were on a 19-day pre-Karnataka poll hiatus to pass on a spike in global oil rates. As of now, Kerala's move on fuel cost is expected to put pressure on other states as well to reduce taxes, which are mostly ruled by Prime Minister Narendra Modi's Bharatiya Janata Party.
Mr Vijayan had said that the government had decided to bring down the fuel prices to provide relief to the people, who were being burdened by the daily hike in prices of petroleum products.
The move, however, would result in a revenue loss of Rs 509 crore per year to the state exchequer, the chief minister had said.
With this, Kerala became the first state in the country that has decided to take a hit on its revenue to mitigate the impact of higher global prices on customers.
The fuel prices in the country have been increasing consistently over two weeks now. Before that, fuel retailers like Indian Oil and Hindustan Petroleum were on a 19-day pre-Karnataka poll hiatus to pass on a spike in global oil rates. As of now, Kerala's move on fuel cost is expected to put pressure on other states as well to reduce taxes, which are mostly ruled by Prime Minister Narendra Modi's Bharatiya Janata Party.
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