Thiruvananthapuram

Following a reduction of fuel prices by the Centre, the Kerala government on Saturday announced a cut in tax on the prices of petrol and diesel by Rs 2.41 and Rs 1.36 respectively.

"Kerala government announces cut in tax on petrol and diesel by Rs 2.41 and Rs 1.36 respectively," state Finance Minister KN Balagopal said.

Earlier on Saturday, in a significant step aimed at providing relief to people from high fuel prices, the Centre announced a reduction in excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre. Making the announcement in tweets, Finance Minister Sitharman said that the move will have a revenue implication of around Rs 1 lakh crore per year.

The minister, who made several other announcements aimed at curbing inflation said subsidy will be provided on cylinders under the Ujjwala scheme. She urged states to also reduce VAT on petroleum products to give relief to the common man. The government had similarly reduced excise duty on petrol and diesel in November last year on the eve of Diwali.

It had reduced excise duty on petrol by Rs 5 a litre and on diesel by Rs 10 a litre. The government data earlier this week showed that the wholesale inflation in India surged to 15.08 per cent in April from 14.55 per cent in the previous month due to a sharp jump in the prices of fuel, metal, food and non-food articles and chemical products.

Meanwhile the Rajasthan government on Saturday reduced Value-added tax (VAT) on petrol by Rs 2.48 per litre and diesel by Rs 1.16 per litre, following the reduction of excise duty by the Centre.

Taking to Twitter, the state chief minister Ashok Gehlot wrote, "Due to the reduction in the prices of petrol and diesel by the central government, the state government will reduce VAT by Rs 2.48 per litre on petrol and Rs 1.16 per litre on diesel. With this, petrol will be cheaper by Rs 10.48 and diesel by Rs 7.16 per liter in the state."