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Tamil Nadu rules out any ‘immediate cut’ in fuel prices

Our Bureau Chennai | Updated on June 20, 2021

The DMK, in its election manifesto, had promised a reduction in the price of fuels —₹5 in the price of petrol and ₹4 in the case of diesel — if elected to power

Tamil Nadu Finance Minister P Thiaga Rajan has ruled out any ‘immediate’ reduction in excise duty on petrol and diesel.

Interacting with reporters, the minister said that the ‘fiscal situation in the State was much worse than we feared’. That apart, the Union Budget increased cess on fuels at the cost of excise duties. This, he said, deprived the States of revenue as cess revenues are not shared with the States and is retained by the Centre. Also, the second wave of Covid was severe and required the State to spend thousands of crores.

Also read: Petrol crosses Rs 97 in Delhi, diesel nears Rs 88 after another price hike

The DMK, in its election manifesto, had promised a reduction in the price of fuels —₹5 in the price of petrol and ₹4 in the case of diesel — if elected to power. Rajan tweeted that his party had not promised an ‘immediate’ cut and the election promise would be honoured during the course of its term once the fiscal position of the State improves.

He also pointed out that despite the difficult financial situation of the State, the DMK government has honoured its election promise of Covid relief and spent ₹9,000 crore towards it.

Petrol and diesel prices have been rising steadily causing a lot of discomfort to the consumers and the price of a litre of petrol is inching towards ₹100 in Chennai.

Published on June 20, 2021

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