The Centre on Saturday announced a record Rs 8 per litre cut in excise duty on petrol and Rs 6 reduction on diesel.
TMC national spokesperson Sukhendu Sekhar Ray said the Centre has raised the prices of petrol and diesel at least 14 times in the past few months and by leaps and bounds in the past one year.
He also demanded that the central government should lower the petrol and diesel prices to the level during the UPA rule if the government wants to give relief to people in the true sense.
In a statement, Thackeray criticised the Central government for minimal reduction of excise duty on petrol and diesel.
Cut on fuel excise duty: Stop befooling people, says Congress; Nadda seeks VAT cut by opposition-ruled states
Congress chief spokesperson Randeep Surjewala said the government had increased the excise duty on petrol by Rs 10 in 60 days and is now 'duping' people by reducing it by Rs 9.50.
Announcing the cut on state tax, Kerala Finance Minister K N Balagopal said the Union government has partially reduced the huge tax imposed by it. He, however, welcomed the Centre's decision.
The government on Saturday cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 per litre to give relief to consumers from high fuel prices.
"This will reduce the price of petrol by ₹ 9.5 per litre and of diesel by ₹ 7 per litre," Finance Minister Nirmala Sitharaman tweeted.
The Congress scrambled to formulate a suitable response since fuel rates in Rajasthan are the highest in India now.
As a result, the state will incur a revenue loss of about Rs 100 crore for the next five months from November to March 31, 2022, the deputy chief minister said.
The tax cuts should lower headline CPI inflation by 0.14 percentage points due to direct effects and up to 0.3 percentage points, if indirect effects are included.