The state has slashed petrol prices in one fell swoop, find out how
Amid skyrocketing petrol prices, the state government has taken a big decision to reduce fuel prices.
- Amid skyrocketing petrol prices, the state government has taken a big decision to reduce fuel prices.
New Delhi: Amid skyrocketing petrol prices, the Tamil Nadu government has taken a major decision to reduce fuel prices. The government has announced a reduction in petrol prices in its budget. According to a government announcement, petrol prices will now be reduced by Rs 3 in Tamil Nadu. The question is how the government will do this and where it will compensate.
- The Tamil Nadu government presented the budget
Tamil Nadu Finance Minister PTR Palanivel presented his first paperless budget to Tyagaraja. Meanwhile, he announced a Rs 3 reduction in state excise duty on petrol. He said the decision would make petrol Rs 3 cheaper in Tamil Nadu. However, the decision will cost the state government an annual loss of Rs 1,160 crore.
- Rs 3 reduction in petrol price
In Chennai, petrol was priced at Rs 102.49 per liter and diesel at Rs 94.39 per liter on Friday. Petrol price will now go down by Rs 3 after the budget is passed in the Assembly. Petrol and diesel prices have been rising steadily since May 2021. At present, petrol prices are around Rs 100 per liter in about 15 states, including Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Odisha, Tamil Nadu, Kerala, Bihar and Punjab.
The price of petrol is determined not only by its base value but also by the taxes levied by the Central and State Governments. According to sources, Tamil Nadu Finance Minister PTR Palanivel Tyagaraja had recently said that it was not possible to reduce VAT in the current scenario, but now the budget has given a big relief to the people by cutting petrol prices by Rs 3.
Prices may fall in other states too!
Experts believe that after the Tamil Nadu government, other states will also be pressured to reduce taxes on petrol and diesel. As a result, other states may announce lower prices in the next few days. Especially in states like Punjab and UP where elections are held next year, it is more likely.