CM urges PM to consider reduction of excise duty on diesel

Chennai, Jan 25 (UNI) Expressing concern over the rising inflation rate, Tamil Nadu Chief Minister M Karunanidhi today urged Prime Minister Manmohan Singh to consider reduction of excise duty on diesel by a minimum of Re one per litre.

In a letter to the Prime Minister, Mr Karunanidhi said the price of petroleum products particularly, diesel, was a basic driver of inflation.

The Centre should consider reducing the price of diesel by Re one per litre, so that the resultant reduction in diesel prices would help checking the spiraling inflation, he added.

Although the rise in diesel price was primarily due to the increase in global oil prices, the increase in excise duty proportional to the increase in the oil prices had also contributed to it, Mr Karunanidhi said.

He said when the Centre increased the prices of petroleum products last time, the state government reduced the sales tax on diesel with a view to contain the price rise.

''Considering the recent inflationary trends, the excise duty levy on diesel, which is currently Rs 4.98 per litre needs to be reduced to bring down the diesel prices,'' the DMK leader, said.

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