CHENNAI: AIADMK coordinator and former chief minister O Panneerselvam on Sunday said with the Centre has reduced the excise duty on fuel prices, the State government should also reduce petrol and diesel rates by decreasing the Value Added Tax (VAT) on it.
Claiming that as the inflation has affected even at the global level, the Union government has reduced the petrol and diesel prices by Rs 8 and Rs 6 per litre respectively, the AIADMK leader, in a statement, said in addition, a subsidy of Rs 200 per LPG gas cylinder was also given under Pradhan Mantri Ujjwala Yojana scheme besides reducing taxes on plastic, coal and iron prices.
Welcoming the Centre's initiative to reduce fuel prices, Panneerselvam claimed after the Union government's announcement the states could also reduce a maximum of Rs 9.50 per litre of petrol and up to Rs 7 per litre of diesel.
"By doing this, prices of essential commodities such as vegetables, fruits and construction-related materials will be reduced", he said adding "similarly, service charges of taxi and auto will also be decreased besides there would be a decline in inflation".
Pointing out after the Centre's announcement, Kerala and Rajasthan governments have reduced the fuel prices by decreasing its VAT, the AIADMK leader said "there is an expectation from the people here that as per the poll promise the DMK government should take steps for reducing the petrol price by Rs 2 per litre and Rs 4 for diesel per litre".
The deputy opposition leader of the House said by reducing the fuel prices, transportation rates will be decreased for students and office goers in the State.
Stating that with already the prices of essential commodities have increased, and the rates of tomato and beans prices have increased to Rs 100 per kg in the State, Panneerselvam said at this juncture, taking into consideration of people's welfare, the DMK government has the duty to fulfil all the poll promises.
"Therefore, the chief minister should take steps to at least reduce petrol price by Rs 2 per litre and Rs 4 for diesel per litre", he added.