Providing some respite to consumers, the DMK government in Tamil Nadu cut petrol prices by Rs 3 per litre across the state.
The DMK, which swept to power in April, presented its maiden budget today. It has reduced the state taxes by Rs 3 in a bid to provide some relief from record high fuel prices that have been burning a hole in commuters pockets.
The move is expected to cost the state exchequer Rs 1,160 crore annually.
The Oil Marketing Companies have kept the rates unchanged for the 27th consecutive day today.
Petrol pirces have touched three digit mark in all major metros. Petrol in Chennai currently costs Rs 102.49 per litre while diesel retails at Rs 94.39 per litre.
The move could lead other states to announce similar cuts in local taxes to bring down the fuel prices. The OMCs revise fuel prices on a daily basis tracking global crude oil prices.
A large component of the fuel prices comprises central and state taxes.
