India, March 6 -- Finance minister Nirmala Sitharaman said on Friday that the issue of tax burden on petroleum products was something that the Centre and the states have to discuss as both draw revenue from these items.

In an interaction with members of the Indian Women's Press Corps (IWPC), Sitharaman said that consumer sentiment about the tax burden on auto fuel was understandable.

The minister's suggestion for a dialogue assumes significance as both the Centre and state governments shy away from lowering taxes on auto fuel, thinking a reduction by either of them would open up a chance for the other to step up taxes. This poses a dilemma for policymakers.

"While the consumer feels the prices should come down, it is understood and app...