Govt slashes fuel prices by 1 paisa

Employees at a petrol Pump in Kolkata on Saturday as the fuel prices remain at record high level

Initially, IOC website had shown the fall as 50 to 60 paise per litre, that it later retracted to 1 paisa saying that it was a "technical glitch".

Welcoming Chief Minister Pinarayi Vijayan's move to reduce the prices of petrol and diesel in Kerala by Re 1 from June, Petroleum Minister Dharmendra Pradhan on Wednesday pointed out that the state's tax collection was one of the highest while urging other governments to follow suit. An official said the government may absorb the increase in tax rates to keep the prices unchanged as a departing gift to consumers.

After a relentless hike in petrol and diesel prices for the past 16 days, state-owned oil refiner International Olympic Committee today reduced the price of petrol by 60 paise per litre and 59 paise for diesel. In Delhi, petrol now costs Rs 78.35 a litre, down from Rs 78.42, according to a price notification issued by state-owned oil firms.

"P.S. A ONE paisa cut is not a suitable response to the "Fuel Challenge" I threw you last week", Gandhi said.

Fuel prices are based on global rates and also factor in exchange rates. However, after a 16-day continuous rise, the Indian Oil Corporation announced that the price has actually been lowered. The state's Chief Minister Pinarayi Vijayan announced the price cut earlier today, saying that they have chose to lower the taxes in order to bring the retail cost down for consumers.

Crude prices have declined to about $75 a barrel from $80 last week on hopes that key oil producers led by Saudi Arabia and Russian Federation will boost supplies to calm runaway prices, which if left unchecked could lead to demand destruction. "If we look at the fuel prices in the last four years, there has been Rs 10 lakh crore loot and one paisa relaxation". Fuel prices can not go up like this. The Kerala government drove home the point that it would be sacrificing revenue. State finance minister Thomas Isaac announced the decision during a TV interview.

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