Kerala cuts petrol price; Antony asks other states to follow

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The Kerala government on Saturday decided to waive the incremental tax accruing to it from the recent petrol price hike, giving commuters a marginal relief of 70 paise per litre.

"In view of the latest hike in petrol prices, the state government has decided to forgo the incremental tax accruing to it. Hence, the price would come down by 70 paise," Chief Minister Oommen Chandy said.

The price of petrol went up by Rs.3.14 per litre from Thursday midnight to touch Rs.69.54 in Kerala. It will now cost Rs.68.84 per litre.

Antony asks states to waive additional sales tax on oil

Days after the hike in petrol prices, Defence Minister A K Antony on Saturday advised the states to follow the model of Kerala and waive the additional sales tax revenue generated on oil to provide relief to common man.

Hailing Kerala government's decision to waive the additional sales tax revenue of Rs 108 crore generated on petrol sales, the Defence Minister said other states can also follow the example set by the southern state.

"Price hike of petrol or any other essential commodities is worrisome as it affects the common man. The only way out is that other states can also follow the path shown by Kerala," Antony said.

He was speaking after a function organised here to felicitate senior Malayalam journalist and Mathrubhumi Bureau Chief N Asokan in New Delhi.

"Centre doesn't gain anything when the prices of petrol increase. But the states generate huge revenue through the price hike. The example shown by Kerala is inspiring for other states too. If they also follow this way, it will give slight relief to the people," Antony said.

The Defence Minister pointed out that the oil companies were forced to increase petrol price as the rupee touched a two-year low against the US dollar. The losses have increased the cost of importing crude oil, he said.