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Updated: June 27, 2011 13:43 IST

Kerala to waive cess to cut diesel price

Special Correspondent
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Oomen Chandy:
Oomen Chandy: "The Centre has clarified that the hike (diesel price) was imperative and that huge amounts were being given as subsidy to the oil companies every year". File photo

The State government will waive the cess on the revised diesel price, Chief Minister Oommen Chandy has said on Monday.

Replying to the notice on an adjournment motion moved by T.M.Thomas Isaac in Assembly on Monday seeking a discussion on the price hike in diesel, kerosene and LPG cylinder, Mr.Chandy said that the decision to waive the cess on the revised rate will bring down the diesel price by 75 paise per litre. The State government was thus relinquishing Rs.142.20 crore it could have earned a year as cess.

The government fully sympathised with the Opposition sentiment that the oil price hike will trigger inflation and make life difficult for the common man. However, the Centre has clarified that the hike was imperative and that huge amounts were being given as subsidy to the oil companies every year. The State government was getting only 4 per cent value added tax from kerosene and LPG cylinder. This was negligible. The main intention was to reduce the people’s woes to the extent possible and hence decided to give up the cess from diesel. Earlier, when the government decided to not to levy the cess n the revised diesel price, the Opposition did not appreciate the decision and went ahead with its protest, the Chief Minister said.

Dr.Isaac accused the Centre of forcing the common man pay the price for its corrupt practices. Even while sympathising with the Opposition, the government refused to discuss the issue. The Centre has hiked the diesel price contravening the steps taken by the Reserve Bank of India to rein in inflation. Even while posting huge profit, the public sector oil companies were hiking the oil price citing the difference between the retail rates of petrol, diesel, LPG and kerosene and international crude oil price. The UDF government headed by A.K.Antony in 2002 and subsequently Mr.Chandy had earlier increased the State cess on petrol from 20 to 23 per cent and on diesel to 24 per cent. Though the prices were revised frequently, it did not give up the State cess. Giving up the cess alone was not enough, the government should pave the way for a discussion to unanimously apprise the Centre of the Assembly’s protest, he said.

On the basis of Mr.Chandy’s explanation, Speaker G.Karthikeyan denied leave for the notice and the Opposition walked out in protest.

India has no standard rules and regulations for handling issue/strikes. That‘s why recent strikes took place. Growing rise in the price of oil is an International phenomenon. When I was in India general price of oil(diesel) was Rs 25 but now it reached to Rs 45.Right Now I’m in the USA when I reached here general gas price/oil was $1.99 but it reached to $ 5.See it’s difference . The USA faces so many problems- 10% unemployment, 15% below poverty line. But no one makes strikes.
Strikes are not a solution for handling issues this happened because India has poor legal rules and regulations. All these paved the way to hinder the smooth economic development. India so many natural recourses and no political party like to utilize it in properly.From Malayala Manorama news I came to understand that LDF party destroys several Government Vehicles in Trivandrum due to the rice price of oil (petrol/diesel). Actually those vehicles belong to public not to political parties or their family members. The poor Indian people pay several taxes and others and these are being used to buy public property. The political parties should pay penalties to the public out of their own pockets if these happened. Political party has no right to destroy others/individual properties/government properties. If these happened Apex court should come up and levied fines to those involved in it.

from:  Abey Abraham
Posted on: Sep 17, 2011 at 01:31 IST

The true but hidden reason for intermittent hike in prices of petroleum products is the lack of chances on the part of the VIP-decision-makers and their families of suffering the anxiety and miseries as experienced by the common man as a result of unbearable expenditure on all daily requirements including vegetables in addition to kerosene, cooking gas and diesel and petrol to make both ends meet. Instead global market and losses of oil companies are more than elaborated as the cause of action. Sound of favours to Reliance and probably illegal returns thereon are also reverberating. It would be interesting if information on expenses met by the decision-makers from own pockets on kerosene, cooking gas and diesel and petrol are put in public domain. Since politics has today become no vocation of service to public but reduced to a profession to acquire personal wealth, a drastic cut is needed in the perquisites being provided to politicians. Hike in prices of petroleum products would then be bound to halt when the Minister himself pays for his needs. Perhaps if the loss of the lakhs of crores of rupees to the public in the name of various scams were absent, petroleum products could be supplied to the citizens on nominal prices.

from:  P.R.V.Raja
Posted on: Jun 28, 2011 at 11:52 IST
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