Petrol price reduction made immediate economic impact, says TN Finance Minister

Reducing the tax on petrol by ₹3 a litre would give relief to two crore two-wheeler riders, the Minister said, and added that the diesel subsidy for fishermen has also been increased

Finance Minister Palanivel Thiaga Rajan on Tuesday said the Tamil Nadu government had reduced the tax on petrol [by ₹3/litre] to create immediate an economic impact. The government had provided indirect incentives to provide relief for [sections of] diesel users as well, he told the TN Legislative Assembly. Responding to AIADMK member Rajan Chellappa, who felt that reduction in the diesel price too would have provided succour to the poor, Mr. Rajan said the government would make further decisions after monitoring the sale of petrol and diesel in the last 30 days. He said the government brought down the petrol price since it was clear that it would give relief to two crore two-wheeler riders. “We held a discussion with the Chief Minister and decided to give not just relief, but increase the demand and spending powers. We wanted to give an economic stimulus,” he explained.