Cut taxes, not LPG subsidy
The appeal made by Prime Minister Narendra Modi — for people to give up LPG subsidy voluntarily, if they can afford to buy cylinders at the market price — is nothing but a publicity stunt. His appeal once again proves that there is no change in the basic functioning of the National Democratic Alliance government, right from Atal Behari Vajpayee’s time in the late 1990s to 2004, and now under Narendra Modi.
Mr Modi’s appeal tries to give an impression that people are at fault by claiming subsidy, while the government is generous in extending subsidy to all (even to people who are not eligible and can afford to buy at the market rate).
Mr Modi is conveniently forgetting that the prices of petrol, diesel and LPG should be fixed in accordance with the international crude oil prices and this policy decision was taken by none other than Mr Vajpayee. The same policy was followed by the United Progressive Alliance government.
Mr Modi should realise that international crude oil prices peaked during the UPA regime and crossed the $115 per barrel-mark. The crude prices have today come down to just about $50. However, petrol and diesel are still sold for nearly `70 and `60 per litre respectively and subsidised LPG cylinder for `450. The rates are almost the same as during the UPA regime, when crude prices were much higher. Mr Modi should know that the amount he is losing on account of LPG subsidy is small when compared to what he is minting from the public by deliberately keeping the LPG and fuel prices on the higher side despite steep decrease in crude prices.
As per the open market policy being adopted by the Union governments since Mr Vajpayee’s tenure, the current price of petrol should be `30 per litre, diesel should be `21 per litre and LPG cylinder for `250.
But the NDA government has been openly looting the public by imposing various taxes and deliberately keeping the prices higher.
Under these circumstances, what right does Mr Modi have to ask people to give up subsidies voluntarily?
If he is really sincere and committed towards saving public money, he should allow the prices of LPG and fuel to be in accordance with the present crude prices.
Moreover, Mr Modi should also realise that people are already overburdened with various taxes imposed by the Centre and they have every right to seek LPG subsidy from the Centre. Service tax was hiked indiscriminately recently and there is a proposal to impose another cess for Swachh Bharat.
It is meaningless to put the blame on people for subsidy burden while the reality is that Mr Modi alone is imposing heavy burden on people by deliberately keeping prices of LPG and fuel high.
Mr Modi should know that the amount he is losing on account of LPG subsidy is small when compared to what he is minting from the public by deliberately keeping the LPG and fuel prices on the higher side despite steep decrease in crude prices.