India’s oil ministry seeks 5 pct cut in VAT from states on petrol, diesel

Mangalore Today News Network

New Delhi, Oct 4 2017 DH: India’s oil minister said on Wednesday his ministry has asked for a 5 percent cut in additional state levy, a day after the federal 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," Oil Minister Dharmendra 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 ($0.0308) per litre, a move analysts said could widen the country’s fiscal deficit.