Tamil Nadu slashes petrol price by Rs 3, move to cause loss of Rs 1,160 cr

Tamil Nadu Finance Minister Palanivel Thiaga Rajan, presenting his maiden budget to the Assembly on Friday said the government has decided to cut tax on petrol by Rs three per litre.

"I am happy to inform the House that this government has decided to reduce the effective rate of tax on petrol by Rs 3 per litre and thereby provide major relief to the toiling working class people in the state.

This measure will result in a loss of revenue of Rs.1,160 crore a year," the Finance Minister said.

The DMK, among other assurances, had promised in the run-up to the April 6 Assembly polls that it would reduce prices of petrol and diesel by Rs five and Rs four respectively.

Pointing to such assurances, the main opposition AIADMK has been demanding the DMK to fulfil its poll promises.