India, June 11 -- Even as the Centre has urged states to cut Value Added Tax (VAT) on petrol and diesel to shield consumers from rising fuel prices, Maharashtra is unlikely to follow suit, with officials citing the state's fragile finances and heavy dependence on fuel taxes for revenue.

Senior finance department officials said any reduction in VAT on petrol and diesel would significantly dent the state's revenues at a time when Maharashtra is grappling with a projected revenue deficit of more than Rs.40,500 crore and a debt burden expected to exceed Rs.11 lakh crore in FY 2026-27.

The Centre had appealed to states to reduce VAT on petroleum products after slashing excise duty on petrol and diesel by Rs.10 per litre. The move came amid a...