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EGoM to consider freeing petrol prices

EGoM to consider freeing petrol prices
New Delhi, Jun 22: Even as the demands from auto unions in various states for hike in fares as the CNG price rise hit headlines, an empowered Group of Ministers is expected to discuss the possibility of freeing petrol prices from the control of the government.

The EGoM meet is scheduled to take place on Friday, Jun 25. This comes after the government was forced to postpone a meeting on fuel prices earlier on pressure from allies such as Trinamool supremo and Union Railways Minister Mamata Banerjee.

The state governments have already been asked by the Petroleum Minister Murli Deora to bring down sales tax on petrol and diesel.

In his written communication to the states, the minister worte, “A rise in the international oil prices exerts an upward pressure on domestic prices of petroleum products."

“Ad valorem rates of VAT imposed by the state government further aggravates the impact of international oil prices on the consumers," he added.

The sales tax on petrol is currently as high as 33 per cent while for diesel it is 24.7 per cent.

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User Comments
Jolly 23 Jun 2010 10:04 am
People will simply move to Diesel cars instead, which are more polluting. The goverment charges such high sales tax on petro products, The goverment should insure that the sales tax cannot exceed a certain percentage.
alok 23 Jun 2010 10:01 am
cooking to reduce staggering conventional energy losses. Will some policy maker listen? Energy sector loses are so large that issuing interest free counter guaranteed long term loans for energy saving equipment appears to be a profitable proposition than subsidies.
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