“The cabinet has approved the proposal of the taxation department to bring down the fuel prices in the state, in line with the Central government’s decision, from October 10 midnight,” Tynsong told journalists.
On October 4, the Centre cut petrol and diesel prices by Rs 2.50 per litre by effecting an excise duty cut of Rs 1.50 per litre and asked the oil marketing companies to absorb another Re 1 a litre.
However, with the state facing a financial-crunch, the slashing of rates is set to put an extra burden on the state exchequer dearly.
“By reducing the price of petrol and diesel by Rs 2.50 per litre, the state government will incur an extra expenditure of Rs 15 crore yearly,” the Deputy Chief Minister said.
To offset the additional load, Tynsong said, the government has directed its revenue-generating departments to find out ways and means to generate additional resources.