Fuel price row escalates day after PM’s appeal to cut taxes
Several chief ministers hit out at the Centre again on Thursday in the row over levies on petrol and diesel, accusing the Union government of being “coercive, not cooperative”, even as Union petroleum minister Hardeep Singh Puri opened a new front in the controversy by calling out Maharashtra, West Bengal and Delhi over their Value Added Tax (VAT) rates on jet fuel.
The controversy began after Prime Minister Narendra Modi, while speaking during a meeting with chief ministers on the issue of Covid-19 on Wednesday, said it was in the interest of cooperative federalism to reduce taxes on fuel to help citizens, who are reeling under the effects of high inflation. Modi had called out Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Kerala, and Jharkhand — all with non-BJP governments.
Responding to Modi’s remarks, Tamil Nadu chief minister MK Stalin accused the Centre of “pretending” to reduce fuel-related taxes due to “elections in some states”. “People are aware of this. Who shows real keenness in reducing petrol rates and who pretends and lays the blames on others, I leave it to the people to decide,” he said.
Highlighting his government’s decision to cut VAT by ₹3 per litre on petrol last August , the Dravida Munnetra Kazhagam (DMK) presby ident accused the Centre of hiding facts. “The Prime Minister had said some states were not cooperating with the Centre... To comment on it in one line: it is like hiding a whole pumpkin in a plate of rice,” Stalin said referring to a Tamil saying.
Puri said opposition parties were being hypocritical. “Ever wondered why air ticket prices haven’t come down? Aviation Turbine Fuel constitutes about 40 per cent of the cost of airline operations. But West Bengal, Maharashtra and Delhi impose massive 25 pc + VAT on ATF while BJP states UP & Nagaland; & UT of J&K charge just one pc,” he said in one of several tweets on Thursday.
“Such hypocrisy of oppositionruled states. PM Modi Ji ensures affordable air travel to common citizens with his vision of ‘hvaaii cppl se hvaaii jhaaj tk’ but these states create impediments. They manufacture protests against ‘oil prices’ but fleece the people to fill their coffers,” he added.
India’s petrol, diesel rates have surged in tandem with a spike in global oil prices, particularly since Russia’s invasion of Ukraine. The Centre on November 3, reduced central levies on petrol by ₹5 a litre and diesel by ₹10 a litre.
Kerala chief minister Pinarayi Vijayan said the Centre was running away from its responsibilities singling out a few states. “Instead of blaming states, the Union government should take some proactive steps to control the ever-rising prices of fuel. States are reeling under the impact of pandemic and they are not getting GST dues also regularly. This goes against the concept of co-operative federalism,” he said in a Facebook post. State finance minister TN Balagopal reiterated that the Kerala government had no plans to slash tax on petrol and diesel
Senior Congress leader Rahul Gandhi hit out at the PM, saying his idea of federalism was “not cooperative but coercive”. The 51-year-old MP alleged that the PM was abdicating his responsibility by blaming states for the high fuel prices even when the Centre took 68% of all fuel taxes.
West Bengal chief minister and Trinamool Congress president Mamata Banerjee said the Centre was looking to collect revenue by putting additional burden on common people and the real agenda of Wednesday’s meeting was to blame the states.
Maharashtra deputy chief minister Ajit Pawar said the state cabinet might hold discussions on the VAT levied on petrol and diesel.
TMC spokesperson Saket Gokhale hit back at Puri, saying that about 21% of airline revenues go to the central government as taxes, and they are left with “no profits”. “And that is why air ticket prices are going up. Stop fooling people.”