Mumbai petrol station strike ends

A strike by fuel station owners in India's western state of Maharashtra over what they say are unduly high taxes has been called off.

The decision was made following assurances from the central government that their demands would be considered and examined as soon as possible.

Indian Finance Minister P Chidambaram was one of several leading politicians who negotiated the deal.

More than 2,000 stations were shut in the state because of the strike.

But those run by government-owned oil companies remained open.

There were long queues outside the few petrol stations which stayed open in the state capital, Mumbai (Bombay), on Monday.

Officials say the strike affected freight movement which would have pushed up the prices of essential items.

Owners of petrol and diesel stations say the sales tax imposed by the state is the highest in the country.

Maharashtra charges a 34% sales tax on fuel, which is higher than is levied in the neighbouring states of Goa, Andhra Pradesh, Karnataka and Gujarat.

As a result, most people in the border areas cross over to other states to buy cheaper fuel.