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Fuel prices may come down in Maharashtra

Petrol and diesel prices in Maharashtra may come down by up to Re one a litre.

india Updated: Jun 09, 2006 22:09 IST

Petrol and diesel prices in Maharashtra may come down by up to Re one a litre, with the state responding positively to Petroleum Minister's call not to levy sales tax on the incremental component.

"I have spoken to the chief minister of Maharahstra. He has in priciple shown positive response to this proposal. But, before this price cut materialises the proposal has to be passed by the state cabinet," Petroleum Minister Murali Deora told reporters in Mumbai.

If the proposal gets clearence from the state cabinet, the price of petrol will be reduced by Rs 1-1.25 a litre and that of diesel by Rs 0.60, Petroleum Secretary MS Srinivasan said.

The proposal is not to levy any tax on the Rs 4 a litre hike in petrol and Rs 2 a litre in diesel prices that was announced on June 5.

"The increamental tax means, the tax charged on the amount, which was recently hiked. Presently, the state charges around 30 per cent tax on these fuels.

With prices being hiked, the increamental amount would also be charged with similar amount of tax. This is where, we want the states to cooperate," Srinivasan said.

Petrol costs around Rs 53.50 a litre in Mumbai as compared to Rs 47.51 in Delhi and Rs 51.07 in Kolkata, while diesel costs Rs 30.96 in Mumbai and the same costs Rs 32.47 in Delhi and Rs 34.96 in Kolkata.