CHENNAI: The price of petrol in Chennai dipped below Rs 100 per litre after the Tamil Nadu government reduced its tax by Rs 3 bringing much needed respite to motorists.
According to Tamil Nadu Petroleum Dealers Association president K P Murali, the price of petrol in Chennai is Rs 99.53. "The price of petrol is below Rs 100 within a 50 km radius of Chennai, Salem, Trichy, Coimbatore and Madurai," said Murali. On Friday, the price of petrol in Chennai was Rs 102.53.
Motorists have welcomed the price reduction by the state and want the Centre to follow the state's example. "The major component of the tax is from the Centre. If the Centre also reduces the tax, it would bring relief during these trying times," said a marketing professional Rajesh.
He says that the majority of his salary goes towards paying the fuel bills which are being fixed by his company. Interestingly, the dip in the price of petrol may have pinched the petroleum dealers. However, despite the loss, they have welcomed the move by the state government.
"If a dealer had a stock of 10,000 litres of petrol and was selling it at the price before the cut (Rs 102.52), he would now be losing Rs 30,000. This happens whenever the price dips. But we welcome the state government's move and want other states to emulate Tamil Nadu," says Murali.
The price of petrol before excise is Rs 41.92, while the central excise is Rs 32.90 and the value added tax in TN is Rs 21.25, says Murali.