The BJP raises concerns

The BJP raises concerns. State governments ruled by the opposition have refused to reduce fuel excise taxes.

In response to rising fuel prices, the Union government announced a 5 cent reduction in central levies on gasoline and a 10 cent reduction in central levies on diesel effective Thursday and urged states to lower rates even further by lowering VAT (value-added tax).

The national government, led by Prime Minister Narendra Modi, declared a drop in fuel excise duty, however, numerous states have yet to implement the reduction by lowering VAT prices. (ANI/File Photo)

BJP : On Friday

On Friday, the Bharatiya Janata Party (BJP) attacked opposition parties, including the Congress, for failing to announce fuel price cuts in states governed by them, despite the fact that those governed by it had followed the Centre’s lead and slashed petrol and diesel rates by up to Rs 13.43 and Rs 19.61 a liter, respectively.

In response to rising fuel prices, the Union government announced a 5 cent decrease in central levies on gasoline and a 10 cent reduction in central levies on diesel effective Thursday and urged states to lower rates even more by lowering VAT (value-added tax).

The Congress

The Congress, Trinamool Congress, and Aam Aadmi Party (AAP) have all refused to announce tax cuts, according to BJP spokesperson Gaurav Bhatia. “Yogi Adityanath, the chief minister of Uttar Pradesh, has dropped the price of gasoline and diesel by 12 percent, while prices in Gujarat and Assam have been reduced by 7 percent.

This is on top of the measures announced by the Union administration,” Bhatia said in a Friday press conference.

Maharashtra, Delhi, West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Kerala, Meghalaya, Andaman & Nicobar, Jharkhand, Odisha, Chhattisgarh, Punjab, and Rajasthan, according to data collated by state-run oil firms as of Friday evening, VAT remained unaltered in 14 states and Union territories. Odisha, on the other hand, declared a 3 per liter VAT decrease on both gasoline and diesel starting at midnight.

BJP : Announced

A number of BJP-controlled states have announced cuts ranging from 5% to 10%. The declaration on the eve of Diwali is thought to have been made in light of the BJP’s mixed bag of bypoll results released on Tuesday.

“People in Punjab, Chhattisgarh, Delhi, and Rajasthan want to know why state governments have not taken similar initiatives… Other governments are not following Prime Minister Narendra Modi’s lead, which has been emulated by BJP-ruled states, according to Bhatia.

According to the data, while Uttarakhand, a BJP-ruled state, decreased VAT on petrol by 81 paise per liter, it did not reduce VAT on diesel. In Haryana, the VAT cut on diesel was a symbolic 31 paise per liter, while the state suffered a revenue loss of 5.78 paise per liter on petrol.

Congress’s chief spokesperson

Earlier in the day, the Congress’s chief spokesperson, Randeep Singh Surjewala, tweeted a blistering message in Hindi, accusing the Haryana government of deceiving the public by lowering the VAT on gasoline while raising it on diesel.

“Take a look at what Khattar-‘loot Dushyant’s jeevi’ regime is up to. In Haryana, the VAT on petrol has been cut by 1.12 percent, but the VAT on diesel has been increased by 1.78 percent. The citizens of the state are aware of and understand these lies. “Shame on such an anti-people government,” Surjewala tweeted, along with a link to the excise department’s notification.

THE Head of the Trinamool Congress

Derek O’Brien, the head of the Trinamool Congress, poked fun at the government’s latest initiative. He changed the word “stupid” to “fuel” in a famous quotation from former US president Abraham Lincoln. “You can fuel all the people some of the time and some of the time, but you can’t fuel all the people all of the time,” the top TMC leader said in a tweet, presenting a graph comparing crude oil, gasoline, and diesel costs from January 2014 to November 2021.

Meanwhile, the Shiv Sena, which governs Maharashtra alongside the Nationalist Congress Party and the Congress, criticized the 5-percentage-point cut in petrol prices as insufficient. Sanjay Raut, the party’s spokesperson, said on Thursday that the Centre should have cut the price by “at least 25 per liter” to help people. After losing the bypolls, they (Centre) realized that prices needed to be lowered.”

Rajasthan Chief Minister

Bhatia made a reference to Rajasthan Chief Minister Ashok Gehlot’s tweet, saying that opposition-run states must understand that they have a responsibility to the people, just as they have a part of tax revenue.

“With the decrease of excise duty by the Centre, the VAT levied by the states is automatically cut in the same percentage,” Gehlot said in a tweet on Thursday. We demand that the Centre decrease excise duty even further to combat inflation.”

While central excise is set at 27.9 cents per liter for gasoline and 21.8 cents per liter for diesel, state VAT rates are ad valorem, providing them windfall advantages when international oil prices rise.

oil prices worldwide

The rise in worldwide oil prices (India imports roughly 85 percent of the oil it processes) and high government and state levies are the main causes of high petrol and diesel prices in India. As global crude prices plummeted (below $20 a barrel in April last year), the federal government increased the gasoline excise levy to shore up its budget through 2020. States followed suit as a result of the Covid-19 pandemic’s financial impact. As a result, the combined central excise and state VAT (ad valorem) on gasoline and diesel increased to 53% and 46.9% of their respective retail prices.



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