A huge foreign debt has left the Indian Ocean island with none of the suppliers willing to sell fuel on credit.
Yesen Sustain, which claims to be one of the first clean-tech companies in the world, on Thursday launched E-Marine, a technology it believes will revolutionise the water transport modes.
The Reserve Bank's Monetary Policy Committee hiking the repo rate by 40 basic points to 4.40 per cent earlier this month was a prelude to the government intervention to keep the price rise under control.
The excise duty cut will translate into a reduction of Rs 9.48 a litre on petrol in Kochi and Rs 7.42 per litre on diesel after taking into account its impact on other levies.
K Surendran has urged the Kerala government to reduce fuel tax further by Rs 10.
Union Finance Minister Niramala Sitharaman said the government has decided to slash excise duty on fuel.
The earlier decision was taken when the LNG price was Rs 43 for one kilo. But, now the LNG cost has skyrocketed to Rs110-170 per kilo.
The prices of petrol and diesel would fall by around Rs 2 per litre in Kerala if the state government reduces the sales tax on these fuels.
Kerala's Finance Minister K N Balagopal has termed the cesses and additional duties "unconstitutional".
The scale of the purchases and the decision to go back on a plan to cut coal imports underscore the severity of the India's fuel crisis.