States can reduce VAT on petrol, says Minister of State in PMO V Narayanasamy

CHENNAI: Amid the mounting pressure for rollback of petrol price hike, Minister of State in the PMO V Narayanasamy has said states could reduce the Value Added Tax on petroleum products to provide relief to the people.

"The states can lower the VAT and that can help reduce the petrol price," he told reporters at the airport here last night.

The latest hike in petrol price by Rs 7.50 has come under flak from opposition and also key UPA allies DMK and Trinamool.

On Tamil Nadu Chief Minister Jayalalithaa writing to Prime Minister Manmohan Singh demanding more kerosene allocation to the state, he said, "There has been an increase in the LPG allotment to the state. However, the Centre will look into Tamil Nadu's demand (for kerosene)."