Announcing
the rate cut at a press conference here, UP chief minister
Mayawati said her government has decided to slash the prices
of diesel by Rs 1.50 a litre, petrol by Rs 1 a litre and LPG
by Rs 11.35 a cylinder by abolishing 4 per cent VAT on cooking
gas and reducing trade tax on petrol and diesel.
The
Tripura government reduced the cess on fuel from 5% to 2.5%. A
notification to this effect has been issued, special
secretary, finance, R K Dey Chowdhury, said adding the reduced
rates would come into effect from on Saturday itself.
After
the slash in cess, the price of petrol has been reduced from
Rs 49.89 per litre to Rs 47.85 per litre and the price of
diesel has been reduced from Rs 34.34 to Rs 33.68 per litre.
However, no relief has been given on LPG cylinders. With the
reduction on cess, the state’s revenue collection will be
reduced from Rs 60 crore to Rs 54 crore, he added.
The
Sikkim government reduced the petrol and diesel prices by Rs 2
and Rs 1.40 with immediate effect after slashing of the sales
tax on these twofuel products. The price of petrol now stands
at Rs 50.65/litre as against Rs 52.55, while the cost of
diesel stands at Rs 35.80, it said.
Following
the Centre's decision to increase the prices of the fuel
products by Rs 5 for petrol and Rs three for diesel, the cost
of these fuels would have gone up to Rs 52.55 and Rs 37.20
respectively in the Himalayan state, the release said.
The
state government has, however, taken no decision on the
reduction of the price of LPG cylinders which has gone up by
Rs 50 to Rs 357 in the state.
Mayawati
later said the decision was taken in the interests of the
common man. “The state government has to bear an extra
burden of Rs 2,500 cr for this, as unlike the Congress ruled
states, we will not be bailed out by the Centre. But, we are
trying to provide the maximum relief to the consumers,” she
said. The UP government’s move follows similar decisions
taken by the governments of West Bengal, Bihar, Maharashtra
and Delhi since the Centre announced the highest-ever hike in
fuel prices. Mayawati however did not
lose
the opportunity to take on the Centre, criticizing the
Manmohan Singh government for putting undue burden on the
common man. She also defended UP government policies saying
that sales tax in the state is already low compared to other
states. But that she was taking this decision in interest of
the masses.
Meanwhile,
the day-long general strike called by Left parties in Tamil
Nadu on Saturday in protest against price hike in petro
products evoked mixed response.
Buses
and trains operated as usual. No major untoward incident was
reported, police said. A section of auto drivers kept off the
roads while shops were closed in many parts of the city.
