Chief minister Nitish Kumar said on Monday that Bihar had requested for a reduction in the base price of petrol and diesel.

'We have requested the Centre to reduce the base price of fuel as it was high in Bihar in comparison to neighbouring states. Base price (for petrol) in our state is Rs 56 (per litre) while it is Rs 51 in Jharkhand. There is a need to recalculate and reduce it. I feel that it will be reduced,' Nitish said.

The chief minister's request follows the Centre's appeal to states to cut VAT (Value Added Tax) to bring fuel prices down.

Petroleum experts said base price includes refinery transfer price paid by oil marketing companies, operating or marketing charges applied by them, central excise duty, octroi and transportation cost from depot to petroleum dealers or fuel pumps.

Nitish also made it clear that Bihar will not reduce VAT on petrol and diesel because they were among the lowest in the country. The state imposes 26 per cent VAT on petrol and 19 per cent on diesel.

The request for base price reduction was formally made a couple of days ago at a two-hour long meeting with Union petroleum minister Dharmendra Pradhan at the chief minister's 1 Aney Marg residence. Officials of the central and state governments were present at the meeting.

Talking about his meeting with Pradhan, Nitish said the Bihar government has also proposed to cut down on its quota of kerosene oil in the light of his resolve to provide electricity connection to every household in the state, as well as the centrally-sponsored scheme that provides free LPG (Liquefied Petroleum Gas) to BPL families and ensuring cooking gas connections to all.

'There is a rule of the central government to provide financial incentive to states which voluntarily cut down the use of kerosene oil. We will be eligible for it and expect to get assistance to the tune of Rs 200 crore to Rs 250 crore,' Nitish said.

The chief minister added that he has suggested to Pradhan to choose a district in Bihar and start providing bottled gas connection to every household.

'Very soon a district will be chosen for this purpose and Pradhan will come to launch the scheme. We have deputed the development commissioner (Shishir Sinha) to coordinate with petroleum ministry officials for this purpose,' Nitish added.

The chief minister said talks with Pradhan were fruitful and positive. The projects related to the expansion of Barauni refinery, establishing gas-based fertiliser plant and gas pipeline from Haldia in Bengal to Jagdishpur in Uttar Pradesh, which goes through Bihar, were also discussed.