Pranab asks CMs to cut state levies on diesel, LPG, kerosene | business | Hindustan Times
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Pranab asks CMs to cut state levies on diesel, LPG, kerosene

Finance minister Pranab Mukherjee on Monday asked all chief ministers to reduce state levies on diesel, kerosene and cooking gas to mitigate the impact of the price hike on the common man.

business Updated: Jun 27, 2011 20:02 IST

Finance minister Pranab Mukherjee on Monday asked all chief ministers to reduce state levies on diesel, kerosene and cooking gas to mitigate the impact of the price hike on the common man.

Seeking their co-operation, the finance minister in a letter "urged state governments to reduce levies on diesel, kerosene and domestic LPG line with the duty cuts undertaken by the Centre so as to provide some relief to the common man."

An Empowered Group of Ministers (GoM), headed by Mukherjee, on last Friday raised the price of diesel by Rs 3 per litre, cooking gas by Rs 50 per cylinder and kerosene by Rs 2 per litre. It also slashed customs and excise duties on petroleum products.

Mukherjee in his letter explained the rationale of price hike, saying rising global crude oil prices necessitated the move to increase rates.

The finance minister has said that the government has so far maintained a firm control over the prices of diesel, kerosene and domestic LPG despite global prices rising for the past six months, resulting in daily loss of Rs 450 crore to oil marketing companies.

This has necessitated some revision in the administered prices, he said. He further added that the government has been conscious of the burden on the common man, and therefore, the price hike has been kept minimal.