Kerala to withdraw sales tax on petrol

Thiruvananthapuram: A day after the petrol price hike, the Kerala government at a special cabinet meeting on Thursday decided to forgo the sales tax on petrol, reducing its price by Rs 1.63 per litre.

"This will cost the exchequer Rs 218 crore," Chief Minister Oommen Chandy told reporters here. "I have also written to the prime minister, UPA chairperson and petroleum minister, saying that the hike will affect the people badly."

He said the petrol price in Kerala, after the cabinet decision, will come down by Rs.1.63 per litre. A litre of petrol here will now cost Rs.74.11.