Kerala government to cut petrol, diesel prices by Rs 1

Amid widespread public anger over the rising fuel prices, Kerala government has decided to reduce the prices of petrol and diesel by Rs.1 in the state, news agency ANI reported.

According to Kerala chief minister Pinarayi Vijayan, the new rates will come into effect on June 1.

CM Vijayan, while making the announcement, said he had a message for the BJP-ruled government at the centre.

"This will amount to a loss of Rs. 509 crore for the state government. This is our message to the central government. At a time when the nation has been demanding a reduction in prices, the central government hasn't done anything", Pinarayi Vijayan said.

Kerala as a state was the third highest in levying taxes on fuel but has now decided to lower the taxes.

Various state governments impose Value Added Tax (VAT) on petrol and diesel besides the excise duty levied on them by the central government.

Earlier in the day, Indian Oil had declared that they had cut oil prices in the country by 60 paise after sixteen consecutive days of high prices which had angered everyone.

However, the euphoria of price cut short-lived as hours after announcing cut in fuel prices, Indian Oil Corporation said the revised price was actually 1 paisa and not 60 paise as previously reported blaming it on "clerical error".

As a result, petrol prices have now have been revised down by just 1 paisa and not 60 paise in Delhi and59 paise in Mumbai.