Centre in 'discussion' with Finance ministry to cut fuel prices

New Delhi: The Centre is in 'constant discussion' with the Union Finance Ministry for reduction in petroleum prices, government sources said, even as fuel prices continue to touch record highs almost on a daily basis across the country.

The Petroleum ministry seeks to lower fuel prices and has held discussions with the Finance Ministry on how to go about it, sources added.

Higher taxes on fuel prices is a matter of concern for the petroleum ministry and sources said that they are actively working on the tax issue so that people get some relief from them. As it is the nodal ministry, the Petroleum ministry wants prices of petrol and diesel to come down, though the final decision will be taken by the Finance ministry, the sources said. Both the Centre and the States must reduce the fuel prices together, they added.

Sources also said that the Petroleum ministry is "working very hard with oil producing countries to work towards a reduction in prices by reaching out to them from Saudi Arabia to Russia." They stated that the global oil rates should be within USD70 per barrel and for the next three months, careful measures should be adopted. Fuel prices across the country are at record highs and are pinching the common man's pocket.