States can reduce petrol VAT if Congress takes initiative: Dhumal

Shimla, May 26 (IANS) Hinting at a reduction in petrol prices in the state, Himachal Pradesh Chief Minister Prem Kumar Dhumal Saturday said the Value Added Tax (VAT) on petrol may be reduced further provided the Congress-ruled states took initiative in this regard.

"The governments in Congress-ruled states are mum on the issue of reducing VAT. If they take the lead, we can also think on those lines," Dhumal told reporters here.

He said the Maharashtra government has already refused to lower VAT on petrol.

Dhumal reminded reporters that when petrol prices were increased last time the state government had reduced VAT.

State-run oil marketing firms Wednesday announced the biggest single-shot hike in petrol prices so far of Rs.7.50 a litre.