Hyderabad/Thiruvananthapuram : Chandrababu Naidu in Andhra Pradesh became the first chief minister to announce a cut in state tax, bringing diesel and petrol price by Rs. 2 there.
The move will cost the exchequer around Rs 1,120. The reduction will take effect from Wednesday, 12 Sept.
As Congress-led Bharat Bandh witnessed demonstrations and rallies in all states including the national capital, Centre yesterday advised states to bring fuel prices down by reducing tax at their level.
Kerala says no
In Kerala however, finance minister Thomas Isaac ruled out slash in fuel prices indicating the govt has no appetite to stomach revenue loss.
A tax cut by even a rupee will cost govt loss of Rs 500 crore, Isaac told reporters at a press meet in the capital today.
He criticised Centre’s proposition saying, allowing fuel prices to soar is a roll back on its promise of progress.
Meanwhile petrol and diesel prices scaled fresh highs on Tuesday with petrol vending at Rs 88.26 and dlesel at Rs 77.47 in country’s commercial capital of Mumbai. In Kerala petrol sold at Rs 84.20 per litre and Rs 78.22