Sources said there would be an effort to build consensus among states for categorising jet fuel as a declared good so that it attracts a uniform 4 per cent sales tax by all states. The Centre is pushing states to forego at least the incremental increase in sales tax revenues given the higher prices of fuel products now. This itself will bring down petrol price by Re 1 a litre and that on diesel by 50 paise.

Sources said four states - Madhya Pradesh, Chattisgarh, Karnataka and Orissa — levy entry tax on fuel products, and another four - West Bengal, Chandigarh, Punjab and Jammu & Kashmir — imposed cess. As many as 15 states and Union Territories levy sales tax of 25 per cent or more on petrol.