The Opposition on Wednesday accused Prime Minister Narendra Modi of playing politics during his meeting with chief ministers on the Covid situation by raising the issue of fuel prices and “passing the buck” on to states to reduce prices of petrol and diesel. As the prime minister’s remark triggered a war of words, the BJP said the Opposition’s stance reeks of hypocrisy and alleged that for every litre of petrol, opposition-ruled states were earning twice as much as the BJP-ruled states.
Flagging higher fuel prices in many opposition-ruled states, Modi had urged them to reduce VAT in “national interest” to benefit the common man and work in the spirit of cooperative federalism in this time of global crisis. Modi raised the issue of many states not adhering to the Centre’s call for reducing the Value Added Tax (VAT) on petrol and diesel after his government slashed excise duties on them in November last, and called it “injustice” to people living there and also harmful for neighbouring states.
Reacting to Modi’s remarks at the meet, West Bengal Chief Minister Mamata Banerjee said the interaction with him was completely one-sided and misleading. “Facts shared by him were wrong. We have been providing a subsidy of Re 1 on every litre of petrol and diesel for the last three years. We’ve spent Rs 1,500 crore on this,” Banerjee told reporters in Kolkata. She claimed there was no scope for the chief ministers to speak at the meeting and hence, they could not counter the prime minister’s statement. “It would have been better had the PM not spoken on fuel price hike in a COVID-19 review meeting, it was his agenda,” she said.
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Maharashtra Chief Minister Uddhav Thackeray said the Centre owed Rs 26,500 crore to the state, after Prime Minister Modi said some states did not reduce VAT on petrol and diesel despite the excise duty cut by the Union government in November last year. Thackeray also accused the Centre of a step-motherly treatment to Maharashtra and that the state government was not responsible for the rise in prices of petrol and diesel.
Kerala Finance Minister K N Balagopal said the increase in petrol and diesel rates was due to the cess and surcharge levied by the Centre. He said Kerala has not increased taxes on petroleum products in the last six years. When the state government has not increased taxes on petrol or diesel by even one rupee in the last six years, then how can it be asked to reduce taxes, Balagopal asked.
He said that cess and surcharge are to be levied only in special circumstances like natural calamities, pandemic, etc. And for a specific period like six months or a year.
Congress chief spokesperson Randeep Surjewala attacked Modi, demanding that he give an account of the Rs 27 lakh crore “collected” by the BJP government from tax on petrol and diesel. “Modi ji, No criticism, No distractions, No Jumlas! Please give an account of 27,00,00,00,00,00,00 (27 Lakh Crore) collected by BJP Govt from Tax on Petrol & Diesel,” Surjewala said. He said that on May 26, 2014, when PM Modi assumed charge, crude oil was USD 108 per barrel, but petrol and diesel were priced at Rs 71.41 and Rs 55.49 per litre, while today, crude oil is USD 100.20 per barrel, but the petrol and diesel prices have been increased to Rs 105.41/litre and Rs 96.67/litre respectively in Delhi.
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“We will urge all states to decrease VAT on Petrol/Diesel to pre-May 2014 level. Please admit BJP Govt earned Rs 27 Lakh Crore from Petrol/Diesel while all states collectively received about 16.5 Lakh Crore. Central Govt revenue from Petrol/Diesel has doubled in 8 years,” he said in a series of tweets. Shiv Sena leader Priyanka Chaturvedi also slammed the prime minister, alleging that he made the “COVID meeting about politics”. “The central government has earned 26 lakh Crore out of central excise on fuel, increased 18 times even when oil prices hit rock bottom. The GST share to states still owed, compensation component to state done away with and now pointing fingers,” she tweeted.
Attacking the Opposition, BJP spokesperson Sambit Patra said the chief ministers of Maharashtra, West Bengal, Tamil Nadu, Andhra Pradesh, Telangana, Kerala and Jharkhand “reek of hypocrisy” as their respective parties nonchalantly go on demanding a decrease in the fuel prices but when the ball is in their court, they charge high state tax on fuel to amplify the problems of common people. He also shared a graphic on Twitter comparing the local taxes levied by BJP-ruled states to the Opposition-ruled states, with the caption: “For every litre of petrol, opposition-ruled states were earning twice of BJP-ruled states.”
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Minister for Petroleum and Natural Gas Hardeep Puri tweeted, “Invoking the spirit of cooperative federalism, PM Modi Ji hits the nail on its head. Instead of protesting, the opposition states which have not decreased taxes on petrol & diesel, even after centre reduced excise on such products, should do it now & offer relief to citizens.” Hitting out at the Modi government, TRS leader K T Rama Rao said fuel prices have shot up because of “NPA Central govt”. “Name-calling states for not reducing VAT even though we never increased it; is this the co-operative federalism you’re talking about @narendramodi ji,” he asked on Twitter.
Congress spokesperson Jaiveer Shergill said after collecting Rs 26 lakh crore via taxes, after raising excise duty by 531 per cent on petrol and 206 per cent on diesel, despite having 68 per cent in fuel taxes and not sharing single rupee of profit, “PM is asking states to reduce VAT and pass benefits to Janta”. “Classic BJP theory ‘Profit is Mine & Loss is Yours’,” he tweeted. “Does CM Modi, who solely and entirely blamed UPA Central Govt for fuel hike, agree with PM Modi who now is conveniently & mischievously passing buck to states for reducing fuel prices? Nation wants CM Modi to wake up PM Modi!!” Shergill said.
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