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States to reduce fuel prices

While Andhra has slashed petrol prices by 40 paise, Delhi, Maharashtra and Kerala are working in this direction.

india Updated: Jun 10, 2006 16:08 IST
Agencies

Delhiites could hope for some relief from the recent fuel price hike, with the Delhi government likely to slash sales tax on petrol and diesel.

The government will consider on Tuesday, ways to reduce the burden of the hike in petrol and diesel rates, Chief Minister Sheila Dikshit said on Saturday.

"We will consider ways to reduce the burden of the fuel price hike on Delhiites," she said.

A decision on how to bring down the rates will be taken at a high-level meeting on Tuesday chaired by Dikshit, which will also be attended by Finance Minister AK Walia who is currently outside India.

Sources said the government is likely to slash the sales tax on petrol and diesel in the capital to make a reduction in fuel prices possible.

Congress-ruled Maharashtra and Andhra Pradesh have already cut sales tax on petrol and diesel, bringing down the rates by up to Re one per litre and other states, particularly where the party is in power such as Delhi, are set to follow suit.

The petrol prices in Delhi had increased from Rs 43.51 per litre to Rs 47.51, and diesel rates had gone up from Rs 30.47 per litre to Rs 32.47 per litre, a hike of Rs four and Rs two per litre respectively.

AP Govt slashes petrol, diesel rates

The Andhra Pradesh Government on Saturday slashed petrol and diesel prices by 40 paise and 22 paise per litre respectively.

The decision was taken by Chief Minister Dr YS Rajasekhara Reddy, at a high level meeting with commercial tax officers, to review the hike in petrol prices.

The commercial/sales tax has been slashed from 34 per cent to 33 per cent on petrol and 23 per cent to 22.25 per cent on diesel, which amounts to reduction of 40 paise for petrol and 22 paise for diesel, a spokesman of the Chief Minister's office said.

With the reduction in prices due to a cut in sales and commercial taxes, consumers would benefit with the prices being lesser in the state, compared to neighbouring Maharashtra, an official release said.

The meeting was attended among others by Finance and Revenue Secretaries, Commerical Taxes Commissioner TS Appa Rao and senior officials.