THIRUVANNATHAPURAM: State Finance Minister Thomas Isaac has said that the government will not forgo the tax levied by it on fuel. He blamed the Centre for reducing Rs 2.50 after increasing the price by Rs 14.

“First of all, let the Centre roll back all the hikes made till date. The price was reduced, foreseeing Rajasthan election,” Thomas Isaac alleged.

Meanwhile, amidst the resentment over increasing fuel prices, the Centre on Thursday reduced the fuel price. Rs 2.50 each was reduced for petrol and diesel.

The Centre reduced the Excise duty by Rs 1.50 and the oil companies reduced the price by Rs 1. The reduction was announced by Finance Minister Arun Jaitley after a high-level meeting held in the presence of the prime minister. The minister has appealed to the states to match the cut, so prices will come down by Rs. 5. The Congress called it "band aid" treatment.

Jaitley added that by reducing prices, the Centre will incur a loss of Rs 10,500 cr this year. Steps would be taken to rein in the price hike.