The CPI (M)-led Kerala government slashed the state tax imposed on petroleum products by a rupee in view of the rising fuel prices and Vijayan said the onus was now on the Centre to effect a price reduction from its end. The rise was seen soon after the Karnataka elections were held, the price went up by Rs 3.79 per liter for petrol and by Rs 3.37 for diesel. However, within a span of a few hours, those changes were deleted and instead a measly reduction of 1 paise a litre in both the auto fuels was announced.
Oil prices fell to about $75 a barrel as Saudi Arabia and Russian Federation said they were ready to ease supply curbs that have pushed crude prices to their highest since 2014 [O/R]. Fuel prices in Delhi now stand at Rs 78.42 per litre for petrol and Rs 69.30 per litre for diesel.
"The reduction was supposed to be 1 paisa but due to a clerical error the price prevalent on May 25 was communicated as today's price", news agency Press Trust of India reported, quoting a senior official of Indian Oil Corporation.
"There is a softening in worldwide oil prices and rupee has strengthened against the USA dollar, making imports cheaper".
Prices vary from state to state depending on local sales tax or VAT. Diesel rates were reduced by a similar proportion to ₹73.20. Petrol is priced at Rs 82.57 per litre and Diesel at Rs 75.14 per litre.
This comes the day the Centre cut fuel prices after 16 consecutive hikes, but by only one paisa.