Chennai: In a big announcement that would appease all sections of the people, the DMK government in Tamilnadu announced reduction of petrol prices by Rs three a litre on Friday. It has come into effect from today. This has brought cheer among motorists.
Presenting the budget in the Tamilnadu Assembly, Finance Minister PTR Palanivel Thiagarajan said the State government will incur a Rs 1160 crore revenue loss because of this.
Tamilnadu has 2.63 crore two wheelers. This has become the most popular mode of transport for the working poor. They keenly feel the pinch of the rising cost of petrol.
Recalling his earlier remarks that how the Union government was solely responsible for the increase in cost of the fuel and has benefited tremendously from the increase in taxation
on petroleum products at the cost of the States, the Finance Minister said Chief Minister M K Stalin keenly feels the pain of the working poor and the middle class.
“I am happy to inform the House that this Government has decided to reduce the effective rate of tax on petrol by Rs 3 per litre and thereby provide major relief to the toiling working class people in the State”, he said, adding, this measure will result in a loss of revenue of Rs 1,160 crore a year.