India has no immediate plan to further cut factory gate tax on petrol and diesel due to its tight fiscal situation, a finance ministry source said on Tuesday.
India had cut factory gate tax on the two fuels by Rs 2 ($0.0311) a litre each last week while presenting the Union Budget, but it did not result in lower retail prices as new taxes were added.
India has the highest retail prices of petrol and diesel among South Asian nations as taxes account for about up to 50 per cent of the pump prices.
