New Delhi: Moments after Finance Minister Nirmala Sitharaman announced a reduction in national excise duty on fuel and gas to combat rising inflation, the government has put pressure on states to decrease state taxes as well. Minister for Petroleum and Natural Gas Hardeep Singh Puri expressed gratitude to PM Modi and Ms Sitharaman and underlined the issue of “refusal by some states to cut rates.”
The Congress has retaliated, claiming that the cut is insignificant and accusing the government of ‘fooling’ the public. “The nation does not require juggling of data to deceive the people,” a top leader remarked, citing figures from the previous 60 days as well as 2014 rates.
Mr Puri stated that the price of petrol will fall by ₹9.5, while the price of diesel will fall by ₹7, as the central excise duty on petrol has been reduced by ₹ 8 and the same on diesel has been reduced by six percent. Mr Puri also stated that fuel prices in several states remain ₹ 10-15 percent higher than in BJP-ruled states.
“I want to highlight the fact despite this 2nd reduction in Central excise, price of Petrol & Diesel in States like Maharashtra, Rajasthan, West Bengal, Tamil Nadu, Andhra Pradesh, Jharkhand & Kerala remain around ₹ 10-15 higher than in BJP ruled states,” he tweeted.
He said the price disparity is due to the refusal of their respective state governments to reduce VAT.
“It is time for these states to wake up & reduce VAT to provide relief to their consumers,” he added.
“Dear FM,
In May 2014,
Excise Duty on Petrol = ₹ 9.48/Litre
On 21st May, 2022,
Excise Duty on Petrol = ₹ 27.90/Litre
U reduced it by ₹ 8 now.
U increased Excise on Petrol by ₹ 18.42/litre and now reduced it by ₹ 8/litre.It is still ₹ 19.90 V/S ₹ 9.48 during Congress,” he said in one of his several tweets addressing the Finance Minister on the issue.
While announcing the major change, the Finance Minister also urged governments to make similar cuts and pass the savings on to the general public.
“I wish to exhort all state governments, especially the states where reduction wasn’t done during the last round (November 2021), to also implement a similar cut and give relief to the common man,” appealed Ms Sitharaman.
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