The government is taking steps to rationalise various central and state level-taxes on auto fuels, a oil ministry spokesman said. Taxes and duties are as high as over 51% and 23% on petrol and diesel, respectively in Delhi.

As part of UPA governments 100 days agenda, we have set up an expert panel, which will make recommendations to rationalise taxes levied by the central and state governments particularly on petrol and diesel, he said.

Tax components on retail prices of petroleum products varies from state to state. Sales tax on petrol is as high as 33% in Andhra Pradesh, followed by Tamil Nadu 30%, 29.30% in Kerala, 28.75% in Madhya Pradesh, and 27.98% in West Bengal.

On diesel, sales tax is as high as 26% in Maharasthra, followed by Chhattisgarh 25%, Kerala 24.94% and Gujarat 24.63%.

The panel will also recommend policy measures for sustainable pricing of petroleum products, he said. The expert group is chaired by Dr Kirit S Parikh, former member, Planning Commission.

The oil ministry has also prepared a road map for expanding gas distribution network in over 200 cities, he said. A committee, chaired by MB Lal, member, Appellate Authority on Power & Petroleum has prepared a road map for expanding the city gas distribution by identifying 202 cities to be covered in phases by 2015 and the steps necessary for the same have been laid out, he said.

The ministry has also asked government-owned oil marketing companies to use technology for enhancing consumer satisfaction. Companies such as IOC, BPCL and HPCL have launched SMS services for booking cooking gas in Delhi, he said.