The price reduction, which was surrounded in confusion initially, was marginal at best. 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.
In the past few days, petrol prices have increased across the country by over Rs 4 per litre. "Kerala did well by reducing the price".
Kerala is one of the states that charge high tax rates on petrol and diesel.
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The price of petrol in the capital is now ₹ 78.42 a litre, while diesel is at ₹ 69.30 a litre. This is especially big when you consider the fact that earlier today the centre announced a price reduction of just 1 paisa.
The CPI (M)-led Kerala government slashed the state tax imposed on petroleum products by a rupee in view of the rising fuel prices and Vijayan said the onus was now on the Centre to effect a price reduction from its end.
"I welcome it. One must also note that Kerala is one of the highest tax-collecting states and when we appealed (for fuel price cut), their Finance Minister gave a negative statement, but now they took responsibility".
There is good news for people living in Kerala as the state government has made a decision to reduce taxes on fuel.
Maharashtra Chief Minister Devendra Fadnavis last week suggested bringing fuel under the ambit of GST, saying it would ensure reduction of rates.