Tamil Nadu Cuts Petrol Price By Rs 3 Per Litre

In a huge relief to aam aadmi, Tamil Nadu state government has announced a cut in petrol price. The state government-led DMK government presented its first budget today and it cut down the excise duty on petrol. This will incur a loss of Rs 1160 crore a year for the Tamil Nadu government.

“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,” Finance Minister Palanivel Thiagarajan said while presenting the budget in the state Assembly.

Presently, a litre of petrol costs Rs 102.49 in Chennai, as per the latest rates by oil-financing company. Diesel price is pegged at Rs 94.39 per litre in Chennai.

Tamil Nadu used to charge an excise duty of Rs 32.90 per litre petrol. Now, this would come down to Rs 29.90 per litre, thus giving a straight away benefit of Rs 3 per litre to the end consumer. Netizens are welcoming Tamil Nadu CM Stalin’s governance and his pro-poor actions. Several other netizens are demanding their respective states to follow the Tamil Nadu.

The Centre had raised the excise duty by Rs 13 on petrol and Rs 16 on diesel during March 2020 and May 2020. The duty stood at ₹31.8 on diesel and ₹32.9 on petrol. Now, the excise duty on petrol has come down to 29.9 per litre. Meanwhile, the VAT (Value-Added Tax) varies from state to state.