Petrol price cut benefits two crore motorists, serves as economic stimulus: Tamil Nadu finance minister | Chennai News – Times of India

CHENNAI: Tamil Nadu finance minister Palanivel Thiaga Rajan on Tuesday said the reduction of Rs 3 in the price of petrol has directly benefited two crore motorists in the state and it would serve as an economic stimulus.
“The government is observing the data associated with sales of petrol and diesel in the last 30 days. We are observing how the reduction of the petrol price is reflecting on a daily basis in the state. The outcome of the data will define future measures,” said the minister while responding to AIADMK MLA V V Rajan Chellappa who sought an explanation for not reducing diesel price.
The minister said the petrol price reduction was not only a relief but it would serve as a stimulus to the state economy. Since the government was confident that it would directly benefit two crore two-wheeler owners, who are middle and lower middle classes, it reduced the petrol price. But it was not so in the case when it comes to diesel as sufficient data was not available with the state, he said.
The data relating to diesel vehicles were available with the oil marketing companies, which comes under the Union government. They were not sharing full details with the state. Hence, the state government was not in a position to take a call.
Since there was uncertainty whether reduction of fuel price to logistics and transportation would percolate to the consumers down the line or not, the government has opted for alternative relief measures to the targeted groups. It had enhanced diesel subsidies for fishermen and postponed taxes on bus operators, he added.
The minister said while the DMK regime had reduced fuel price four times, the AIADMK regime had increased the fuel price thrice in the last 15 years.
On the non-tax budget, the minister said that former chief minister M G Ramachandran had raised the sales tax by 1% to feed the school children under the noon meal scheme. “It is the duty of the government to look for appropriate ways and means to enhance the government’s revenue and support its scheme. Social justice is the foundation of each and every scheme of the state government,” he said.


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