"The states can lower the VAT and that can help reduce the petrol price," he told reporters at the airport here last night.
The latest hike in petrol price by Rs 7.50 has come under flak from opposition and also key UPA allies DMK and Trinamool.
On Tamil Nadu Chief Minister Jayalalithaa writing to Prime Minister Manmohan Singh demanding more kerosene allocation to the state, he said, "There has been an increase in the LPG allotment to the state. However, the Centre will look into Tamil Nadu's demand (for kerosene)."
