TN CM Stalin Blames Centre For Hiking Fuel Prices

The response of TN CM Stalin comes after PM Modi said that he was not criticizing anyone but requested Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand and Tamil Nadu to reduce VAT.

Man filing a petrol tank | Credit: Pixabay

Chennai: Tamil Nadu Chief Minister MK Stalin on Thursday blamed the BJP-led central government for hiking the petrol and diesel prices.

Speaking in the state Assembly, Stalin said as the excise duty has to be shared with the state, the Central government reduced that while hiking the cesses and surcharges which are not shared with the states.

The Chief Minister was responding to Prime Minister Narendra Modi's call on Wednesday to states to reduce the Value Added Tax (VAT) on fuel "in the spirit of cooperative federalism".

Modi on Wednesday lit the fuse citing the Central government reducing petrol and diesel prices by Rs 5/litre and Rs 10/litre, respectively, while many states have not followed suit. He said that he was not criticizing anyone but requested Maharashtra, West Bengal, Telangana, Andhra Pradesh, Kerala, Jharkhand and Tamil Nadu to reduce VAT. 

Stalin said, hiking the cesses and surcharges the Central government increased the burden on the common man while earning for itself lakhs of crore of rupees.

Stalin said, people are aware about the fact and mentioned that his government cut Rs 3 per litre of petrol immediately after taking charge.

As per the figures of the Petroleum Planning and Analysis Cell (PPAC), the total contribution of the petroleum sector to the central exchequer galloped from Rs 172,065 crore in 2014-15 to Rs 419,884 crore in 2020-21 and for the nine-month period in FY22, it was Rs 310,155 crore.

On the other hand, the state's revenue went up from Rs 160,554 crore in FY15 to Rs 217,650 crore in FY21 and Rs 207,658 crore for the nine-month period in FY22.

"While both, the Central and the state governments, say that they get the revenue for investments in infrastructure, the PPAC figures show that the Central government has further leeway to reduce the rates," an industry official told IANS on the condition of anonymity.

According to Stalin, owing to some state elections, the central government reduced the oil prices and after winning the polls, the prices were hiked fast.