A decision in this regard was taken at the state cabinet on Wednesday.
The reduction would cause a yearly loss of Rs 5.09 billion to the state exchequer on the tax front, he said.
The petrol price in the state on Wednesday was Rs 82 per litre, while for diesel it was Rs 75, he said.
"The Centre should reduce the rising fuel prices as it was causing severe hardship to the common man", Vijayan said, adding that by reducing the petrol and diesel prices in Kerala, the government has set an example for the Centre to follow.
Even as international crude oil prices are coming down, fuel prices in the country were going up, he claimed.
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