States seek compensation for cut in fuel sales tax

The standoff between the states and the Centre has taken a new turn with state governments demanding their own pound of flesh to help the Center reduce the prices on petrol and diesel. Post the recent government's decision to raise retail petroleum price, Congress and Left ruled states were told to bring down the state sales tax on petrol, diesel and cooking gas. But now, the states are up in arms unwilling to cut taxes any further, if the Centre does not compensate their revenue loss.