Fuel price: State govt unlikely to reduce tax


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Thiruvananthapuram: The state government is unlikely to reduce the fuel tax when the central government has reduced excise duty. With exemptions in excise duty, the state will see a decrease in petrol price by Rs 2.41 and Rs 1.36 for diesel.

In 2021, when the excise duty was reduced, Finance Minister Nirmala Sitharaman requested state governments to reduce the tax levied on fuel. However, states like Kerala refused to reduce the tax.

Back then, FM KN Balagopal wrote on Facebook that the state government also reduced the tax. However, the price was only reduced due to the tax relaxation from the central government.

Meanwhile, the petrol price on Sunday was slashed by Rs 8.69 a litre and that of diesel by Rs 7.05 per litre following the government's decision to cut excise duty on auto fuels, giving relief to consumers battered by high fuel prices that had pushed inflation to a record high.

The government had on Saturday announced a record Rs 8 per litre cut in excise duty on petrol and a Rs 6 reduction on diesel.

The excise duty cut will translate into a reduction of Rs 8.69 a litre on petrol in Delhi and Rs 7.05 in diesel per litre after taking into account its impact on other levies.



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