Fuel price cut: Dharmendra Pradhan thanks Kerala for shouldering responsibility

Petroleum Minister Dharmendra Pradhan on Wednesday welcomed Kerala governments move to cut the prices of petrol and diesel in Kerala by Re 1 and pointed out that the state's tax collection was one of the highest while urging other governments to follow suit.

Pradhan alleged it was the Centre which had appealed to the Kerala government for a reduction in oil prices but its offer was spurned by state Finance Minister Thoman Issac.

"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. I thank them for it," ANI quoted Pradhan as saying.

"Kerala did well by reducing the price. All states, whether governed by BJP or opposition, should try to reduce fuel prices but each state has different priorities and responsibilities," Pradhan said.

Defending the situation, Pradhan said since the nation moved to the mechanism of daily price revision from July 2017, fuel rates have increased and decreased between 1 paisa and 27 paise.

"Since we moved to the mechanism of daily price change, prices have gone up and down by 1 paisa, 12 paise, 27 paise etc. It is not for the first time that there has been a change of 1 paisa. However, today one of our employees made a mistake and we accept it," the petroleum minister said.

Earlier in the day, Kerala government decided to slash the state tax imposed on petroleum products by a rupee in view of the rising fuel prices.

After making the announcement, chief minister Pinarayi Vijayan said the onus was now on the central government to effect a price reduction from its end. The revised prices will come into effect from June 1.