Kerala govt to cut petrol and diesel price by 1 Rupee

Kerala government has decided to reduce the prices of petrol and diesel by 1 Rupee in the state. The new price is expected to come into effect on 1 June. CM Pinarayi Vijayan announced the decision at a meeting of the state cabinet in Thiruvananthapuram.

According to reports, it is not clear how much of the tax will be cut. The consumer state, heavily dependent on imports, has been reeling under the steep rise in prices that continued unabated for the 15th day on Tuesday.

In the past 16 days, petrol prices in four metro cities - Delhi, Mumbai, Chennai, Kolkata - have increased by over Rs 3 per litre. The reason behind the increase in petrol prices in the country is the rise in the crude oil cost and high excise duty levied on the particular fuel type.

Petrol and diesel prices in India are linked to Singapore gasoline prices and Arab Gulf diesel prices , which mostly track movements in crude oil prices.

Earlier, Union Petroleum and Natural Gas Minister Dharmendra Pradhan assured the public that the government will soon take out a solution to tackle the situation. In April, Pradhan had said the Centre and the state governments have been considering bringing the petroleum products under the ambit of Goods and Services Tax.