Finance Minister Pranab Mukherjee on Monday made out a strong case for a 25 per cent reduction of taxes levied by States on petrol to bring down its price.
Speaking at the day-long meeting of the Congress Working Committee (CWC), he justified the high price of petrol because of the overall international price of crude.
He said the States needed to also do their bit on reduction of petrol price.
Corruption and price rise were the most important issues during the discussion at the CWC.
KPCC president Ramesh Chennithala attacked the petroleum companies for raising the petrol prices, especially at a time when Kerala was witnessing a by-election that put the party in trouble.
He wanted the government to take back the power to decide oil prices.
The price for Crude oil has been crashed in international market. So why the Oil companies couldn't reduced the price. But they will not reduce when the Government is helping the corporates like Reliance to amass the profit from Fuel business. India having more than 15 Oil Refineries and is not importing processed petroleum products. We are just importing crue oil. So why they are hiking the price according to the price hike of the finished petroleum products. Why public have to bear the burden for the hike that has been hiked not in parity with the hike in the cure oil price?
The advice/request of Mr. Pranab Mukherjee to States to reduce state tax
on petrol is wholly unjust. The center in its arrogance and to make more
money from petrol both by tax and dividend from petrol cos. do not want
to reduce its own share of tax but wants States to do it, knowing very
well that States have very limited resources and options. Before
advising others one must first set an example.
It is time we brought about some openness and clarity about fuel pricing in this country. If the international oil prices are so volatile, then the government has no business making a certain percentage of that as taxes. Surely, the services it offers do not go up or down depending on the cost of crude oil! How about not just reducing the tax burden on fuel costs, but also fixing taxes at flat rates so they don't do their dangerous dance, highly inflating increases?
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