State govt can decrease tax to make fuel cheaper, says V. Muraleedharan
Kochi: Union Minister of State for External Affairs & Parliamentary Affairs V Muraleedharan said that Kerala government can reduce tax if it wants to bring down the fuel price.
The BJP leader said that fuel prices are determined based on the price of crude oil, transportation and processing expenses and treaties between nations besides tax. More than 50 percent of fuel price is tax collected by central and state governments. Tax money collected by the central and state governments are returned to the people as various benefits and schemes.
"If the state government wants to make fuel cheaper, it can always reduce the tax. But Kerala Finance Minister Thomas Isaac has said he will not reduce the taxes. But the Centre has never said so. In fact, the Centre has reduced taxes at several stages," said the Union Minister.
Fuel prices in Kerala are reaching an all time high. On Wednesday, petrol price increased by Rs 0.25 to Rs 86.46 per litre. Diesel price increased by Rs 0.27 to Rs 80.67 per litre.
So far in January, petrol price has increased by Rs 2.61 per litre while Diesel price by Rs 2.77 per litre. On January 1, petrol was sold for Rs 83.85 per litre while diesel was sold for Rs 77.90 per litre.