Maharashtra cabinet to discuss reduction in sales

"The meeting has been convened to discuss the sales tax reduction on petrol and diesel, following the hike in fuel prices yesterday. State Sales Tax and Finance Department officials will attend the meeting," Maharashtra Finance minister Jayant Patil said.     

The cabinet will discuss various means to mitigate the effect of hike in fuel prices on the common man, he said.      In the highest ever price rise, the government yesterday announced a Rs 5 a litre increase in petrol, Rs 3 on diesel and Rs 50 per LPG cylinder together with customs and excise duty cuts to combat spurt in global oil prices.     
The government that dithered over the issue till global crude prices touched an all-time high of $135 a barrel, announced the increase in an election year. Maharashtra imposes 28 per cent tax on petroleum products. It is highest in the country.     

Endorsing the use of the fuel ethanol in petroleum products, Patil said, "this is a crisis period and priority should be given to indigeneously produced ethanol being added to petroleum and diesel to reduce its cost."     

The central government had taken a decision to add 10 per cent ethanol to petrol but the oil companies had opposed it, he said. "Now is the time to use such measures and petrol pumps should be given permission to mix ethanol with petrol and diesel if necessary," Patil added.