He said after the Centre's relief of Rs.2.50 per litre on diesel, the state government has chose to give a further relief Rs.1.56 per litre by way of taxes.
He also asked state governments to follow suit and cut taxes by a similar amount. Most of the BJP-NDA States did so.
The relief to consumers will be in three parts - centre will cut excise duty by Rs 1.5, and oil marketing companies (OMCs) will factor in Re 1 in their pricing, and states have been asked to cut Value-Added Tax as they have raked in windfall gains due to ad valorem nature of the levy that results in higher realisation whenever rates move up, he said.
In Chennai, the petrol price was Rs 84.70 per litre while that of diesel was Rs 77.11 today.
Union Finance Minister Arun Jaitley on Saturday said he disagreed with the Supreme Court's judicial view on Section 377 that sexuality is a part of free speech. Kerala Finance Minister Thomas Isaac also announced that the government will not reduce prices at the state level. It has consistently resisted demands for excise duty cuts since May when pump prices first started to move up. At a time when the Goods and Services Tax (GST) collections have clearly not kept pace with expectations, GST revenue collection for September crossed Rs 94,000 crore falling short of the one lakh crore target per month set by the government.
Three BJP-ruled states - Rajasthan, Madhya Pradesh and Chhattisgarh - are scheduled to go to the polls later this year. Gujarat had announced a price cut to the same tune.
He said the challenges thrown up by the increase in the global price of crude oil is serious and can not be resolved by either the tweets or television bytes of some opposition leaders. They were raised a day after the polls got over.
Since April this year, prices of petrol and diesel has witnessed a steep upswing, baffling consumers all over the country. The prices started going up after voting was over on December 14. Petrol prices were regulated until 2012, while diesel prices remained so until 2014.