Petrol prices in Tamil Nadu, Puducherry dips below Rs 100 after VAT reduction

Providing some respite to consumers, the DMK government in Tamil Nadu cut petrol prices by Rs 3 per litre across the state.

Puducherry government announced a tax cut in petrol prices on 25 August. The territorial administration has cut value-added tax (VAT) on petrol by 3 percent.

Providing some respite to consumers, the DMK government in Tamil Nadu cut petrol prices by Rs 3 per litre across the state. Diesel prices have been kept unchanged. The DMK, which swept to power in April, presented its maiden budget today. It has reduced the state taxes by Rs 3 in a bid to provide some relief from record-high fuel prices that have been burning a hole in commuters pockets.

The decision on the reduction was taken by Chief Minister N Rangasamy at a meeting of the territorial cabinet earlier and was approved by Lieutenant Governor Tamilisai Soundararajan, said an official press release. With the cut, the price of petrol would be reduced by Rs 2.43 per litre in Puducherry and Karaikal regions. Petrol currently retails at Rs 101.81 a litre and diesel costs Rs 92.73 in Puducherry.

The move is expected to cost the state exchequer Rs 1,160 crore annually. The Oil Marketing Companies have kept the rates unchanged for the 27th consecutive day today. Petrol prices have touched the three-digit mark in all major metros. Petrol in Chennai currently costs Rs 102.49 per litre while diesel retails at Rs 94.39 per litre. A large component of the fuel prices comprises central and state taxes.

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