Centre working on long-term solution on fuel price hike: Pradhan

Bhubaneswar: Union Petroleum and Natural Gas Minister Dharmendra Pradhan on Thursday said the Central Government is working on a long-term solution to address the volatility and frequent revisions in rates of petroleum products in the country.

The statement of Pradhan came following the hike in petrol and diesel prices on a daily basis for last few days.

Pradhan asked the Odisha Government to cut the Value Added Tax (VAT) on petrol and diesel to provide relief to the people.

The Union Minister said the Centre had cut excise duty on fuel by Rs 2 in October last year.

On the other hand, State Finance Minister Sashi Bhusan Behera said Odisha collects only 26 percent VAT on fuel that is among lowest in the country.

Odisha Pradesh Congress Committee president Niranjan Patnaik also demanded that the centre should reduce the tax on the petroleum products.

The BJP-led Government had in June last year junked a 15-year old practice of revising rates every fortnight and introduced daily revisions.