The Centre has urged the state governments to reduce levies on Diesel, Kerosene and cooking gas in line with the duty cuts undertaken by the union government to provide some relief to the common man. In a letter to Chief Ministers of states, Finance Minister Pranab Mukherjee said the Centre has so far maintained a firm grip over the prices of diesel, LPG and kerosene at the retail level even as the prices of crude are very high in the international market and sought states' cooperation in doing the same by reducing taxes at their level. He said the moderate hike in administered prices of petroleum products was necessitated because the government was losing too much of money in providing oil subsidy and it was becoming difficult to meet the fiscal and budgetary management targets. The government raised diesel, kerosene and LPG prices on Friday but removed the 5 per cent Customs duty on crude oil and reduced import duty on all petroleum products to 2.5 per cent from 7.5 per cent.