Congress-ruled States should cut tax on petrol: Pradhan

New Delhi: With petrol and diesel prices climbing to record high, Oil Minister Dharmendra Pradhan on Sunday asked Congress Governments in Rajasthan and Maharashtra to cut sales tax if the party was concerned about fuel price burden on common man, but did not say if BJP-ruled States like Madhya Pradesh and Karnataka, where petrol has crossed Rs 100 mark, would do the same.

Petrol and diesel have risen to an all-time high across the country after fuel rates rose by Rs 5.72 to Rs 6.25 per litre in less than six weeks. This is due to a combination of rising international oil prices and record-high central and State taxes.

Talking to reporters on the sidelines of an event organised to inaugurate the oxygen plant set up by Indraprastha Gas Ltd at Maharaja Agrasen Hospital, he said central and State Governments need additional money from the taxes on petrol and diesel to meet expenses for fighting pandemic as well as development work.

“I accept that fuel prices are pinching consumers,” he said, adding the government is spending Rs 1 lakh crore on providing free food grains to poor this year alone besides spending money on vaccines and healthcare infrastructure.

Asked about Congress leader Rahul Gandhi’s repeated attacks on the Modi government for skyrocketing fuel prices, Pradhan said, “Why is



fuel expensive in Maharashtra, Rajasthan and Punjab (which are ruled by the party)?”

“If Rahul Gandhi is concerned about the poor being hit by fuel prices, he should ask chief ministers of Congress-ruled states to cut taxes. He should ask (Maharashtra Chief Minister) Uddhav Thackeray to reduce taxes,” he said.

He, however, did not say if BJP-ruled states like Madhya Pradesh and Karnataka, which too have seen petrol price cross Rs 100 a litre mark due to local taxes, would follow suit.

Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. And because of this, petrol retails at over Rs 100 per litre mark in seven states and union territories -- Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka and Ladakh.

Of these states, Congress is in power in Rajasthan and is a coalition partner with Shiv Sena and NCP in Maharashtra. BJP rules Madhya Pradesh and Karnataka and Ladakh too is under central rule. Andhra Pradesh has YSR-Congress in power while TRS rules in Telangana.

Rajasthan levies the highest value-added tax (VAT or sales tax) on petrol and diesel in the country, followed by Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana and Karnataka.