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.