Wednesday, September 7 2005 15:59 Hrs (IST) - World Time -

Thiruvnanthapuram: The Kerala government today (Sept 7, 2005) decided to forgo the additional sales tax to be generated by the hike in petroleum products to lessen the burden of common man.

Briefing reporters on the cabinet decision on the matter, Chief Minister Oommen Chandy said this would bring down the cost of petrol and diesel by 24 to 25 per cent of the increase.There would be a loss of Rs 180 crore for the state per year on this account, he said.The reduction would be introduced with immediate effect and the government was working out the details urgently, he said.

In money terms, the decision would help to bring down the price by about 75 paise on petrol and 50 paise on diesel. Since the local body polls are around the corner, the state Election Commission would be informed of the decision.

Though government did not wish to violate the model code of conduct, it could not just ignore the difficulties caused to the people by the increase in petroleum prices, he said.

Chandy also said there would be enough justification for the petroleum price hike but the hardship it would be causing to the people was also grave.