Oil Minister Seeks 5% Cut In State Taxes On Petrol, Diesel

Oil minister Dharmendra Pradhan said on Wednesday that his ministry has asked for a 5 per cent cut in additional state levy, a day after the government cut excise duty on petrol and diesel to protect retail consumers from high global crude oil prices. The finance ministry had earlier ruled out lowering excise 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 Rs. 650 difference between crude oil prices and petroleum prices," Pradhan said.

The government on Tuesday cut excise duty on petrol and diesel by Rs. 2 per litre, a move analysts said could widen the country's fiscal deficit.