New Delhi: Petrol will cost Rs 17.46 per litre and diesel Rs 18.07 in Delhi if all duties and taxes on the two fuels are removed, Petroleum Minister Mani Shankar Aiyar said today (Dec 7, 2004).

The Rs 37.84 per litre retail selling price of petrol in Delhi includes Rs 2.12 a litre customs duty, Rs 12.07 excise duty and Rs 6.19 per litre sales tax, he said in a written reply to the Rajya Sabha in New Delhi.

Similarly, Rs 26.28 charged for a litre of diesel in Delhi includes Rs 2.29 for customs duty, Rs 3.15 for excise and Rs 2.77 for sales tax.

To a separate question, Aiyar said that sales tax rates in Andhra Pradesh, Kerala, Karnataka, Maharashtra, Mumbai, Madhya Pradesh, Rajasthan and Tamil Nadu are the highest in the country.

These States levy taxes between 28 to 31 per cent on petrol. Mumbai has the highest sales tax on diesel at 34 per cent while Madhya Pradesh charges 28.75 per cent taxes.

"Government is constantly monitoring and keeping under careful review the prices of all sensitive products," he said.

Considering India's high dependence on oil imports, the increase in international prices does affect the domestic consumer prices of petroleum products.

However, steps like cutting excise duties and customs duties on petrol, diesel, PDS kerosene and domestic LPG, have been taken to contain the impact of such increases in domestic consumer prices, he said.

Besides, oil companies have shared the burden by not passing the full increase in international prices on to the domestic consumers. "The oil PSUs has suffered under-recoveries of around Rs 7,760 crore during the first half of 2004-05 on account of LPG and kerosene."

In addition, oil PSUs have suffered under-recoveries during 2004-05 on account of non-revision in the domestic consumer prices of petrol and diesel in line with the international prices, he added.