In a relief to common man, the UDF government in Kerala on Monday decided to forgo the state tax to be accrued by way of the recent increase on diesel price.
This was announced by chief minister Oommen Chandy in the state assembly while replying to an adjournment notice given by opposition LDF on the issue.
Diesel price would come down by 75 paise due to the decision.
The state exchequer would lose Rs 142.2 crore by giving up the tax, he said. Kerala had given up the tax when petrol price was hiked by the Centre last month.