Deora tells States to reduce sales tax on petrol, diesel

To help cushion the impact of the auto fuel price hike announced by the Government, the Petroleum Minister, Murli Deora, has appealed to the State Governments to lower the sales tax on these products. Informing the Lok Sabha, the Minister said, “We will keep the views expressed by members in mind and we will respond suitably in case there is a decline in international prices of crude oil. At the same time, I would appeal to State Governments to do their bit by revising downwards the sales tax imposed on Petrol and Diesel.” The retail price of petrol has been raised by Rs4 a litre and diesel by Rs2 a litre. “When the price of the Indian basket of crude oil fell from its highest level of $142/bbl in June, 2008 to $40 per barrel in December 2008, Government had responded by reducing the price of petrol by Rs 10 a litre and the price of diesel by Rs 4 a litre, in two stages within a space of two months. (July 3, 2009)