Centre reduces fuel price, Congress calls it ‘panic reaction’ before upcoming elections

The Congress, however, said that inflation is as big as an elephant and reduction is as small as an ant. It dared the Prime Minister Narendra Modi to bring the fuel prices back to the 2014 level instead of throwing a " pittance of one or two rupees."

Centre reduces petrol price, Congress calls it a 'panic reaction' before the upcoming election

A petrol pump employee serves a customer at a fuel station. (PTI Photo)

After the central government on Thursday announced a Rs 2.50 per litre cut in petrol and diesel prices, factoring in excise duty reduction of Rs 1.50 per litre and asking oil companies to absorb another Re 1, the Congress party said that inflation is as big as an elephant and reduction is as small as an ant.

The grand old party dared the Prime Minister Narendra Modi to bring the fuel prices back to the 2014 level instead of throwing a ” pittance of one or two rupees.” Addressing a press conference, Congress spokesperson Randeep Surjewala called the cut a “panic reaction in the face of public anger” ahead of assembly polls in four states.

While the Centre cut excise duty on petrol and diesel by Rs 1.50 per litre and asked oil firms to absorb Re 1 a litre of prices, BJP-ruled states including Gujarat, Maharashtra, Uttar Pradesh, Madhya Pradesh, Chattisgarh, Jharkhand, Assam and Tripura announced a cut in VAT of up to Rs 2.5 per litre to effect a Rs 5 per litre reduction in pump rates. The other states, however, didn’t follow the suit.

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West Bengal Chief Minister Mamata Banerjee demanded that the Centre should slash fuel prices by Rs 10 per litre at least and also withdraw the cess on petroleum products.

Read | Amid mounting pressure and threat of high inflation, Centre finally cuts fuel price

“The central government should slash fuel prices by Rs 10 at least. This government at the Centre is not bothered about the well-being of the masses… They are only interested about their party (BJP),” Banerjee, whose government had last month slashed petrol and diesel prices by Re 1 per litre, said while addressing a programme in Siliguri.

Calling it a sham, Delhi Chief Minister Arvind Kejriwal also tweeted that the Modi government increased excise duty on fuel by Rs. 10 and today reduced just Rs. 2.50. “It is a sham. The Centre should have at least reduced prices by Rs. 10 per litre.”

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The reduction in excise duty, only the second in four years of BJP-led NDA rule, will dent government revenues by Rs 10,500 crore and was aimed at cooling retail prices that had shot up to an all-time high. Announcing the decision, Finance Minister Arun Jaitley asked the state governments to match the move with a similar reduction in sales tax or VAT. The price cut would be effective from midnight tonight.

BJP President Amit Shah said the decision shows Narendra Modi-led government’s sensitivity towards people’s welfare.

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