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Tamil Nadu reduces petrol prices by Rs 3 per litre

Prime News, National, Chennai, August 13:-To provide a relief to common man, Tamil Nadu government has decided to reduce the petrol price in the state.
Tamil Nadu finance minister P Thiaga Rajan on Friday (August 13) announced to cut excise duty on petrol. Once implemented, the petrol price will be cheaper by Rs 3. “This Government has decided to reduce the effective rate of tax on petrol by Rs 3 per litre and thereby provide major relief to the toiling working-class people in the State. This measure will result in a loss of revenue of Rs.1,160 crore a year,” the FM said.

Petrol is at all-time high in India even when the price have remained unchanged for nearly a month. A litre of petrol costs Rs 102.49 in Chennai, according to the latest rates by oil-financing company. Diesel is being sold at Rs 94.39 per litre in Tamil Nadu’s capital.

Tamil Nadu used to charge an excise duty of Rs 32.90 on petrol. This excise duty cut will cost the southern state a loss of Rs 1,160 a year, the government mentioned.

Petrol costs over Rs 100 per litre in at least 19 states and Union Territories in the country — Maharashtra, Delhi, West Bengal, Tamil Nadu, Andhra Pradesh, Telangana, Rajasthan, Madhya Pradesh, Karnataka, Uttar Pradesh, Haryana, Jammu and Kashmir, Odisha, Ladakh, Bihar, Kerala, Punjab, Sikkim and Nagaland.

The price of auto fuel in India depends on international crude oil prices, rupee-dollar exchange rate. Moreover, the central government and states levy various taxes — excise duty and Value Added Tax (VAT) on petrol and diesel. Dealer’s commission and freight charges are also added in the fuel price.

The Centre raised excise duty by Rs 13 on petrol and Rs 16 on diesel between March 2020 and May 2020. The duty now stands at Rs 31.8 on diesel and Rs 32.9 on petrol. VAT varies from state to state.

-NAV, Inputs: Agencies

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