The Modi government has increased the base price of petrol on the same day as the reduction in central tariff on petrol and diesel. The increase is 70–80 paise per liter in different states. But on the same day that the tax cut was portrayed as a public welfare measure by the Modi government, the oil companies and the government kept it a secret as the price hike would tarnish its image.
In Rajasthan, companies have hiked the base price of petrol by 71 paise, Chief Minister Ashok Gellot said. He pointed out that if the price goes up at the same rate, the benefits of the tax cut will be lost. In Delhi, petrol price was hiked by 81 paise on Sunday and in Chennai by Rs 1.28.
With the reduction of the central excise duty on petrol by Rs 8, the VAT should be reduced by Rs 9.5 per liter in the states. In the national capital, petrol price fell to Rs 96.72 per liter from Rs 105.41 per liter. The price difference is only Rs 8.69. In Chennai, the price dropped to Rs 102.63 from Rs 110.85. Instead of nine and a half rupees, the minimum is 8.22 rupees.
The Modi government has not increased fuel prices for 137 days since last November ahead of assembly elections in five states, including Uttar Pradesh. After the election, from March 22 to April 6, petrol and diesel prices were hiked by about Rs. Inflation has not risen since April 6, when inflation soared. However, the oil companies and the Center have made it clear that petrol prices will go up on the same day as the tax cuts.
BJP governments do not reduce fuel VAT
The BJP states pretended not to hear the central government’s demand for states to cut fuel taxes.
Karnataka Chief Minister Basavaraj Bomme has said that VAT reduction will be considered but it has not been reduced yet. Bihar Chief Minister Nitish Kumar has said that the decision will be taken on the basis of tax losses. No other BJP chief minister has responded.
The highest petrol and diesel prices in the country are in the Congress-ruled states of Rajasthan and Chhattisgarh. Chhattisgarh Chief Minister Bhupesh Bhagel has said that the state has lost Rs 5-00 crore in VAT revenue due to central tax cuts and will not reduce VAT further. Rajasthan reduced VAT. BJP-ruled Madhya Pradesh is also on fire.
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