New Delhi, March 2: To mitigate the impact of rising fuel prices, the Ministry of Finance is considering cutting excise duties on petrol and diesel, news agency Reuters has reported, quoting government officials. Central and state taxes account for nearly 60 percent of the retail price of petrol and diesel in the country. The announcement to cut excise duties on petrol and diesel may come before polling in Assam, Tamil Nadu, Kerala, West Bengal and Puducherry. Bhopal Cricketer Gets 5 Litres of Petrol as Award for Winning Man of the Match Title.

"We are discussing ways in which prices can be kept stable. We will be able to take a view of the issue by mid-March," one of the sources was quoted as saying. The report also said the Ministry of Finance has started consultations with some states, oil companies and the oil ministry to find the most effective way to lower the tax burden. India is the world's third-biggest consumer of crude oil. Fuel Price Hike: Tamil Nadu Couple Receives Petrol, Gas Cylinder and Onions on Their Wedding, Video Goes Viral.

While the proposal to cut excise duties on petrol and diesel is considered, the report said, the government wants oil prices to stabilise before reducing taxes. "I can't say when we will reduce taxes on fuel, but (the) Centre and states have to talk to reduce fuel taxes," Union Finance Minister Nirmala Sitharaman said recently. Meanwhile, the prices of petrol and diesel remained unchanged for the third consecutive days on Tuesday.

Petrol and diesel prices have been rising continuously since February 9. Petrol and diesel prices have increased 26 times in 2021 with the two auto fuels increasing by Rs 7.46 and Rs 7.60 per litre, respectively, so far this year.

(The above story first appeared on LatestLY on Mar 02, 2021 03:57 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website