Petrol price hike: Vaiko asks TN government to reduce 27% VAT on fuel

CHENNAI: Slamming yesterday's petrol price hike, MDMK leader Vaiko today said the Tamil Nadu government should reduce the 27 per cent Value Added Tax (VAT) on fuel to minimise the impact.

"The hike citing the falling Indian Rupee amounts to daylight robbery. The Indian Rupee is depreciating because of the wrong economic policies of the UPA government," he said.

While government had compensated oil companies' loss by providing them over Rs 38,000 crore, what was the need for the latest price revision as it would only further burden the common man, already suffering from inflation and increasing price of essential commodities, he said in a statement here.

"If the state government reduces the 27 per cent VAT on petrol, it can help minimise the impact of the price hike," the former AIADMK ally said while condemning the Centre for its "anti-people" approach.

Oil companies had on Wednesday increased the price of petrol by Rs 7.50 per litre citing the depreciation of the Rupee.