No plans to reduce taxes on petroleum goods: Finance Ministry

The government Friday said that it is concerned about frequent hike in prices of petroleum products but does not plan to reduce taxes on oil goods.

"No, Sir. There is no such proposal (to reduce or withdraw taxes imposed on petroleum products) at this stage," Minister of State for Finance SS Palanimanickam told Lok Sabha.

The Government, he added, was concerned about the frequent hike in prices.

The government in the recent past has increased prices of petroleum goods including petrol, diesel, LPG and kerosene several times in view of the rising prices of crude oil in the international market.

Taxes account for nearly 45 per cent of the retail price of petrol.

In order to insulate the common man from the impact of rise in international oil prices, Palanimanickam said the government "modulates the retail selling prices of diesel, PDS kerosene and domestic LPG."

Following hike in prices of petroleum products in June, the government had slashed customs and excise duties on import of petroleum products, which has an annual revenue implication of Rs49,000 crore.

Meanwhile, the government today sought Parliament's nod for an additional Rs30,000 crore to compensate Oil Marketing Companies (OMCs) for losses on account of sale of diesel, LPG and kerosene.