New Delhi: With prices of petrol and diesel climbing steeply, Union Minister for Petroleum and Natural Gas Dharmendra Pradhan Sunday agreed that the rates were a problem, but said that since government expenses are up due to Covid-19 relief measures, “the Centre is saving money to spend on welfare schemes”.
“I accept that fuel prices are pinching consumers, there’s no doubt about this. But over Rs 35,000 crore has been spent on Covid vaccines in a year. Rs 1 lakh crore has been spent on Pradhan Mantri Garib Kalyan Yojana in order to provide eight months’ ration to the poor. A few thousand crores of rupees have also been transferred to farmers’ bank accounts under PM Kisan…In such dire times, we’re saving money to spend on welfare schemes,” Pradhan said, speaking to the media.
With the Centre facing constant flak from the Opposition over fuel prices, Pradhan asked Congress governments in Rajasthan and Maharashtra to cut sales tax if the party was “that concerned about the burden on the common man”. Asked about Congress leader Rahul Gandhi’s repeated attacks on the Modi government, Pradhan said, “Rahul Gandhi must answer why fuel prices are high in Congress-ruled states like Punjab, Rajasthan and Maharashtra. If he is so concerned about the poor, he should instruct the Maharashtra Chief Minister to reduce taxes, as fuel prices are very high in Mumbai.”
Pradhan, however, refrained from commenting on whether BJP-ruled states, like Madhya Pradesh and Karnataka, where petrol has crossed the Rs100-mark, would do the same.
Fuel prices differ from state to state depending on local taxes such as VAT and the freight charges levied on them. Due to this, petrol at present costs more than `100 per litre in seven states and Union Territories, which include Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka and Ladakh. Of these states, Congress is in power in Rajasthan and is a coalition partner with Shiv Sena and NCP in Maharashtra. Madhya Pradesh and Karnataka are ruled by the BJP. Ladakh too is under Central rule. Andhra Pradesh has YSR Congress in power while TRS rules in Telangana.
While international oil prices have crossed $72 per barrel in anticipation of demand recovery following the rollout of vaccination programme by various countries. Last year when rates collapsed to two-decade low, the union government instead of passing on the benefit to consumers raised excise duty to record high. The excise tax on petrol was `9.48 per litre when the Modi government took office in 2014, and that on diesel was `3.56 a litre.
