The central government has said that it is not planning to rollback the latest hike in the prices of petrol in the country, despite intense political pressure, including that from coalition partner, Mamata Banerjee.

The hike in petrol prices of Rs 1.8 per litre is unlikely to be rolled back. Trinamool Congress chief Mamata Banerjee has demanded that the petrol hike may be rolled back. The Centre has asked the West Bengal Chief Minister to reduce the 26% VAT levied on petrol in her State.

Banerjee has said they she will consider quitting the UPA alliance if the government doesn't bring down the petrol prices. Sources said that the EGOM had decided to decontrol and Mamata was not present but she was informed of the decisions.

The centre is keen on making state government in Bengal reduce its VAT in order to bring down petrol prices if it desires to roll back the price hack. The chief minister, who took over from the ailing communist government in the state, is keen to be seen as on the side of the people in rising inflation and increasing prices of petrol.

Experts say that increasing the prices of petrol is not enough as when the oil companies are burdened with lower prices in domestic market and higher crude prices, the government is also forced to pay subsidy bill.