Published: Wed, May 30, 2018
Business | By Pearl Harrison

Petrol Price to Reduce in Kerala; Government Decides to Cut State Taxes

Petrol Price to Reduce in Kerala; Government Decides to Cut State Taxes

In New Delhi, a cut of less than 1 percentage point means that petrol will cost 77.83 rupees/litre on Wednesday, while diesel will be sold at 68.75 rupees/litre. The current petrol price in Mumbai is Rs 86.23 per litre from the previous Rs 86.24 per litre and the current diesel price is Rs 73.78 per litre from the previous Rs 73.79 per litre.

This morning, the Indian Oil website first showed 60 and 56 paise a litre cuts in petrol and diesel prices in Delhi. The marginal 1 paisa cut fuelled anger on social media.

The Union minister also urged the opposition against politicising the issue and said other states, irrespective of being governed by BJP or not, should try and ease the burden from the consumers, who have faced the brunt of 16 consecutive days of fuel price hike. Businesses affected by fuel price revisions including large fleet operators, petrol pump owners, refineries and oil marketing companies could make use of these to reduce their losses.

This is the first time in 16 days that the OMCs have reduced petrol and diesel prices.

Petroleum prices do not fall under the ambit of Goods and Services Tax (GST) and are one of the big sources of revenue for the state government.

Kerala charges roughly 32.2% tax on petrol and 25.58% on diesel, among the highest in the country. The Narendra Modi government, which came to power in May that year, took advantage of the low oil prices to jack up the excise duty on petrol and diesel.

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