Fuel prices in Kerala slashed from June 1

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Amid rising criticism over steep hike in fuel prices, the Kerala government on Wednesday has decided to cut petrol and diesel prices by Rs 1 a litre from June 1.

Speaking exclusively to CNBC-TV18, Kerala Finance Minister, T M Thomas Isaac, said that cut in petrol and diesel means giving up of additional revenue by the state government.

The Minister said Kerala levies 31.8% VAT till today and there will be a reduction of 1.6% from tomorrow onwards.

29.8% is the effective VAT rate on petrol and diesel in Kerala.

Earlier today, petrol and diesel prices was revised to just 1 paisa a litre each, with state-owned oil companies blaming clerical error for previously announcing a cut of up to 60 paise.

State-owned oil companies today morning announced reduction in petrol price by 60 paise to Rs 77.83 a litre and diesel by 56 paise to Rs 68.75 in Delhi. Within hours of the announcement, they revised the cut to just 1 paisa a litre each.

Petrol in Delhi now costs Rs 78.42 per litre and diesel Rs 69.30.

The marginal reduction comes after 16 consecutive price increases since May 14 when fuel retailers ended a 19-day pre-Karnataka poll hiatus to pass on a spike in global oil rates.

In all, petrol price was increased by Rs 3.8 per litre and diesel by Rs 3.38 in that fortnight.

Prices vary from state to state depending on local sales tax or VAT. Delhi has the cheapest price among all metros and most state capitals.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow