NEW DELHI (Reuters) - 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 2 rupees ($0.0311) a litre each last week while presenting the federal 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 percent of the pump prices.
($1 = 64.2900 Indian rupees)
Reporting by Manoj Kumar; Editing by Malini Menon