Special Correspondent

Price of petrol will come down by Rs.1.22 a litre

THIRUVANANTHAPURAM: The government on Friday issued a notification reducing the Sales Tax on petrol and diesel. Accordingly, the price of petrol will come down by Rs.1.22 a litre and diesel by 66 paise a litre.

The notification brings down the rate of tax on petrol from 29.01 per cent to 26.03 per cent and diesel from 24.69 per cent to 22.49 per cent. The new rates will come into effect from Friday midnight.

An official release said the State exchequer would lose Rs.322 crore this year on account of the reduction in tax rates. The government had decided to forgo the additional revenue from the hike in petrol and diesel prices by the Union government to provide relief to the people. The Cabinet had decided to cut the tax rates on Wednesday, but a decision on the quantum of tax cut was deferred by two days. Petrol prices had gone up by an average of Rs.5.39 a litre in the State (including dealer commission) following the announcement by the Centre of a hike of Rs.5 a litre. The average price of diesel went up by Rs.3.34 a litre. The hike announced by Centre was Rs.3 a litre for diesel.

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