The Kerala government on Wednesday announced a Re 1 per reduction per litre in the price of petrol and diesel from Friday, in a bid to bring some relief to the people hit by rising fuel costs.
Addressing reporters in Thiruvananthapuram after the weekly Cabinet meeting, Chief Minister Pinarayi Vijayan said: "The state government has decided to forego Re 1 from its tax portion and as a result, the loss to the exchequer would be Rs 509 crore in a year.
"The state exchequer would lose Rs 509 crore per annum by reducing the tax share by Re 1 per litre. Any further hike on petroleum products in the state would be eligible for this one rupee cut per litre. Our decision to forgo a portion of the tax revenue, even during the period of financial precariousness should work as an eye opener for the union government, which, so far, has not taken any steps to control the fuel price in the country," Pinarayi Vijayan said.
Pinarayi added, we wish to send a message to the Centre that despite pleas from several quarters, it is not doing anything to bring some relief to the people.
"The price of fuel products is rising when international prices are falling. We did this because we wish to show our intent," he added.
As on May 30, the price per litre of petrol and diesel in the state is over Rs 85 and Rs 75 respectively.
“The Union government should learn the message sent out by the Kerala government and take appropriate steps to cut down the fuel price considerably," Pinarayi said.
Opposition leader Ramesh Chennithala criticised the government calling it an eyewash. He said that instead of slashing the price by Re 1, the government should have decided to forgo the additional revenue from the price increase.
(With IANS inputs)