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Karnataka and Kerala Govts Refuse to Match Centre’s Petrol and Diesel Price Cut

Finance minister Arun Jaitley while announcing the rate cut had urged all state governments to match the deduction and thirteen BJP-ruled states have immediately followed suit.

Revathi Rajeevan | CNN-News18

Updated:October 5, 2018, 12:00 AM IST
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Karnataka and Kerala Govts Refuse to Match Centre’s Petrol and Diesel Price Cut
Representative image (Reuters)
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Soon after the Centre cut petrol and diesel prices by Rs 2.50 per litre, Karnataka and Kerala governments announced that they would not reduce fuel prices further.

Finance minister Arun Jaitley while announcing the rate cut had urged all state governments to match the deduction and thirteen BJP-ruled states have immediately followed suit.

But Karnataka chief minister HD Kumaraswamy said he would not reduce taxes on fuel. “The state did it before the central government did,” he said.

In September, the chief minister had announced a Rs 2 cut on petrol and diesel prices while the country was seeing daily increase in prices.

However, this was after a 2% fuel price hike in July in the form of cess for farm loan waiver announced in the budget.

Speaking to the media, Kumaraswamy also said that he appreciates the move by the central government. "At least now, the central government opened its eyes. They have reduced the price seeing people's difficulty. We appreciate that," he said.

The prices of petrol and diesel in Bengaluru are Rs 84.76 and Rs 75.93 respectively.

Kerala finance minister minister Thomas Isaac also rejected the central government’s request to match the fuel price cut.

The state will do so if the Centre bring the fuel prices down to the level when the Narendra Modi government assumed office in May 2014, Issac told the media here while reacting to Union Finance Minister Arun Jaitley's statement in this regard.

"Ever since the Modi government assumed office, it has raised excise duty on diesel by Rs 14 and petrol by Rs 9 per litre. You should understand that the reduction effected on Thursday is on this amount. If the Centre is serious, it should reduce the tax to what it was when it assumed office. Then we will also step in," said Isaac, a former economist.

(With inputs from agencies)
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