Kerala's move could put pressure on other states, mostly ruled by Narendra Modi's Bharatiya Janata Party, to reduce taxes.
IOC's financial profile, it said, is likely to remain moderate over the medium term due to its high capex and investment plans.
New Delhi: Kerala will cut taxes on gasoline and gasoil to reduce retail fuel prices by 1 rupee per litre from June 1, Finance Minister Thomas Issac told television channel CNBC 18.
Kerala’s move could put pressure on other states, mostly ruled by Prime Minister Narendra Modi’s Bharatiya Janata Party, to reduce taxes.
Communist party-ruled Kerala is the first state in the country that has decided to take a hit on its revenue to mitigate the impact of higher global prices on customers.
Issac said his government will calibrate tax rates in such a manner that retail fuel prices will be reduced by 1 rupee per litre from June 1. Indian state refiners on Wednesday announced a marginal cut in retail prices of the two fuels.
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