Cut taxes on petrol, diesel: PM Modi urges states amid rising fuel prices

New Delhi: Prime Minister Narendra Modi on Wednesday urged states to cut taxes on petroleum products to unburden the citizens from rising prices of petrol and diesel.

Chairing a review meeting on Covid-19 with chief ministers to take stock of the pandemic situation, the Prime Minister said that to keep the momentum of India's economy strong and going, "it is time the Centre and state practice cooperative federalism".

"You all are aware the way our supply chain got impacted due to the (Ukraine-Russia) 'war', the challenges are growing day by day. This global crisis is bringing several challenges. Under these circumstances, we need to practice cooperative federalism," he said.

The Prime Minister said the Centre decreased the excuse duty in November last year to unburden the citizens from high prices of fuel. "We also urged every state to decrease their tax rates and transfer this benefit to the citizens. Some states decreased the tax but others didn't do the same. As a result, the prices of petrol and diesel in these states are much more than the other states. This is not only injustice to the people of such states, but it also harmful to neighbouring states as well," he said.

The Prime Minister said that the states like Karnataka and Gujarat would have earned an additional revenue of more than Rs 5,000 and 3,500 crores respectively had they not decreased the taxes.

The Prime Minister also gave a statewide comparison of the prices of petrol. He named Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Jharkhand and Kerala and said that these states did not reduce the state tax.

"In Chennai, the price of petrol ia around Rs 111 per litre, in Jaipur it is Rs 118, in Hyderabad, it is more than Rs 119, in Kolkata it is more than Rs 115 and in Mumbai it is more than Rs 120 per litre." In states which reduced the taxes, the fuel prices are much lower, he said.

"Like in Daman the price of petrol is Rs 102 per litre, in Kolkata it is Rs 115, but in Lucknow it is Rs 105 per litre. The price is Rs 105 per litre in Hyderabad, but in Jammu it is Rs 106. In Jaipur, it is Rs 118 but in Guwahati it is Rs 105 per litre," he added.

"I appeal to all of you. The revenue earned in past six months will be used in your state, but now I seek your cooperation in this regard," he said.

The government announced a reduction in excise duty, Rs 5 on petrol and Rs 10 on diesel, in November 2021. (UNI)