Today, Prime Minister Narendra Modi was in a mood to answer the opposition’s strike over trolls and rising diesel prices. The occasion was for the Chief Minister’s meeting on Corona, but PM Modi not only took a jibe at the rising prices of petrol and diesel but also threw the ball in the hands of the Chief Ministers of the opposition.
PM Modi blamed the Russia-Ukraine war for the rise in oil prices. He then called for coordination between the Center and the states and asked the opposition chief ministers to provide relief to the people for the reduction in taxes on petrol and diesel, as the Center reduced excise duty in November.
This statement of the PM has come at a time when people are troubled by the daily rising prices of petrol-diesel, PNG and CNG. Opposition parties have been surrounding the Modi government regarding this issue, but now when the Prime Minister himself has appealed to the Chief Ministers to reduce VAT on oil, he will not be able to swallow the opposition.
Russo-Ukraine war sparks oil debate
In his interaction with the Chief Ministers, Modi said that the challenges arising out of the war situation which has affected the supply chain are increasing day by day. This global crisis is bringing many challenges, in such a situation it has become necessary to increase the coordination between the Center and the states.
Modi further cited the rising prices of petrol and diesel. He said that the central government had reduced the excise duty in November to reduce the burden on the people. State governments were also asked to reduce VAT. Some states gave relief to the people by obeying the Center but some states did not.
PM Modi said that due to this, the prices of petrol and diesel in those states are now higher than in other states. The PM said it was unfair to do so as it has also harmed neighboring states as people went there to refuel. The PM acknowledged that the tax-deducting state suffers revenue loss but it provides relief to the common man.
Modi further said that if Karnataka had not reduced VAT, it too would have earned more than Rs 5,000 crore in these six months. Gujarat also reduced VAT. Had it not been reduced, it would have earned Rs 3-4 thousand crore more. But many of these states have given relief to the people of their state by reducing the tax. On the other hand, neighboring Karnataka-Gujarat states earned an additional revenue of Rs 4,000-5,000 crore without deduction.
Modi said that 42 percent of the revenue received by the Government of India goes to the states.
The Prime Minister further said that six months have passed since the Center cut excise duty. But if the state governments want, they can also give relief by reducing VAT.
It hasn’t changed in the last few days
There has been no change in the prices of petrol and diesel in the last few days. But before this, oil prices remained high for several consecutive days. At present, petrol is going beyond Rs 100 per liter across the country. Petrol is being sold at Rs 105.47 per liter and diesel at Rs 97.03 per liter in Noida, adjacent to Delhi. At the same time, petrol remained unchanged at Rs 109.79 per liter and diesel at Rs 105.26 per liter in Ghaziabad.