Thiruvananthapuram : The reduction in petrol, diesel prices is Centre’s ploy to temporarily save face amid strong protest around the country against its hike spree of fuel prices, said Finance Minister KN Balagopal. Faced with enormous protests from all quarters, the central government has effected a minor reduction in the Special Excise Tax it levied on petrol and diesel. That's all. The petrol cost comes down five rupees thereby and diesel by ten.
On the other hand, the Central government, in the past few months, raised petrol and diesel prices by a whopping Rs 30 per litre by way of mounting Special Tax and Cess on these fuels. Incidentally, the revenue from these two taxes are not shareable with states and also these spikes have no bearing in rate fluctuations of crude oil in the international market, the minister said.
In effect, the present price cut is only a dust cloud kicked by the Centre to fool public eyes. What the government should be doing is, help the public by reducing the Special Tax and Cess amounting Rs 30 that it levies on petrol and diesel, over and above the central taxes it imposes. The LDF government never once raised state tax on petrol and diesel in the past 6 years. In fact, the state one time reduced its side of the tax during the period, said the minister.
