Oil ministry seeks 5 percent cut in value added tax from states on petrol, diesel

Last Updated: Wed, Oct 04, 2017 17:07 hrs
Dharmendra Pradhan (PTI image)

NEW DELHI: oil minister Dharmendra Pradhan said on Wednesday his ministry has asked for a 5 percent cut in additional state levy, a day after the union government cut factory gate tax on petrol and diesel to protect retail consumers from high global crude oil prices.

The finance ministry had earlier ruled out lowering factory gate duties on petroleum products citing pressure on government finances.

"By taking cognizance of the whole scenario, the prime minister has given direction to the finance ministry and the oil ministry to look into this aspect and rightly, I don't see this as an issue of loss or gain," Pradhan told reporters.

"There is about $10 difference between crude oil prices and petroleum prices," Pradhan said.

India on Tuesday cut factory gate tax on petrol and diesel by 2 rupees per litre, a move analysts said could widen the country's fiscal deficit.

($1 = 65.0350 Indian rupees)

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