The Kerala Finance Minister K N Balagopalin his Kerala Budget 2023 proposed to increase the Social Security Cess on the sale of Petrol and Diesel at the rate of Rs. 2 per litre. This is expected to bring in additional revenue of Rs. 750 Cr to the Social Security Seed Fund.
Currently, the petrol price in Kerala is 105.81 per litre and Diesel costs ₹94.74 per litre, which is one of the highest across the country. This hike of cess was updated after a series of hikes during the Covid years, petrol and diesel prices. This strategy was taken despite the input crude oil prices surging from $102.97 per barrel that month to $116.01 per barrel in June 2022 and falling to $82 per barrel in January 2023.
The Finance Minister said that the Centre’s assistance to the state has been reduced and a financial crunch is expected this year. During his budget speech, the minister said about giving more focus would be given to the “Make in Kerala” project to increase the state’s domestic production and give a boost to employment and investment opportunities.
The difference in fuel retail prices in the two states is due to the different tax rates levied by the respective state governments on the same products. Now the present increase in cess by the state will hike the petrol price in Kerala which would ultimately affect the common people.
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