Wednesday, June 7 2006 16:10 Hrs (IST) - World Time -

New Delhi: Stating that there was no proposal under his consideration to partially roll-back the steep hike in petrol and diesel prices, Petroleum Minister Murli Deora today (June 7, 2006) asked states to cut sales tax to reduce the burden on common man.

"No proposal (for a partial roll-back) is under consideration at my ministry's level," he told reporters after a meeting with chief executives of oil firms here.

Deora said the hike of Rs 4 per litre in petrol and Rs 2 a litre in diesel price announced on Monday was done after wide consultations within the UPA Government and with allies, including the Left parties.

"We have been very reasonable.The barest minimum hike has been passed on to consumers," he said.

Yesterday, Deora met Congress president Sonia Gandhi to explain the circumstances leading to the hike and the rationale behind the single largest ever increase in petrol prices. After the meeting, he had stated that the Government was 'responsive to people's sensitivities, but remained non- committal on whether there would be a roll-back at all.

"As of now, there is no proposal with my ministry," he said today.

Deora asked state governments to lower sales tax to moderate the increase. Any increase in fuel price would result in quantum jump in state revenues from sales tax due to ad valorem nature of rates and they should pass on the (revenue) increase to consumers." Ironically, Congress-ruled states of Andhra Pradesh and Maharashtra and Left-governed West Bengal levy the highest rates of sales tax.