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Nirmala Sitharaman was addressing the media after the 53rd GST Council meeting.
The revised price will be applicable from 6 am on Friday.
Last week, the government cut the price of the domestic 14.2kg LPG cylinder by Rs 200 per LPG cylinder.
The CMD of the cash-strapped corporation said attempts to increase productivity were torpedoed by regressive workers who don't clock minimum working hours.
The LDF government had imposed a social security cess on petrol and diesel in the Kerala Budget.
The cess at the rate of Rs 20 for each bottle of Indian-made Foreign Liquor (IMFL) priced between Rs 500 and Rs 999.
According to sources, lack of funding is limiting the ability of e-bus makers to participate in federal government tenders to supply to states.
The Kerala State Road Transport Corporation has cut down 50 per cent of its ordinary bus services due to acute shortage of diesel.
Kerosene was selling for Rs 84 a litre in May, which was increased by Rs 4 to Rs 88 in June. This was now further hiked by Rs 14 a litre.
The government on Saturday announced a record Rs 8 per litre cut in excise duty on petrol and Rs 6 per litre reduction on diesel.