Govt defends decision to raise excise duty on fuel, TMC raises issue in Parl

The Trinamool Congress today continued to attack the government over its decision to hike excise duty on petrol and diesel for the second time in the last four month, reported IBNlive.

The report quoted TMC officials as saying that the government is not passing on the benefit of falling oil prices to consumers even after the government has promised to de-control fuel prices.

TMC MPs were seen protesting outside Parliament holding banners against the price hike.

Speaking in Parliament, Oil Minister Dharmendra Pradhan said that to mobilise revenues the government has to take some steps without burdening the consumer.

The government on Tuesday raised excise duty on petrol by Rs 2.25 per litre and by Re 1 a litre on diesel which would add Rs 4,000 cr to revenues.

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Along with the earlier hike in excise duty the government is expected to garner Rs 10,000 crore in additional revenues for the current fiscal which in turn will will help contain budget deficit.

The government said that the hike in excise duty would not result in hike of retail fuel prices.

Pradhan said “if international oil prices continue to fall, the benefit will certainly be passed on to consumers.”

The slump led to petrol prices being cut seven times since August and diesel on three occasions in last one-and-half-months, he said.

Oil prices have declined 18 percent last month and are 38 percent lower in 2014.

Pradhan said the government is committed to easing business environment so that manufacturing gets a boost and more jobs are created.

Meanwhile, NDA ally PMK today asked the Centre to withdraw the hike in excise duty on petrol and diesel and wanted the domestic prices of petro products to reflect the decline in international crude oil prices. Referring to the increase in excise duty on petrol and diesel by Rs 2.25 and Rs one a litre respectively effective last night, PMK founder S Ramadoss today said it would affect the poor and middle class people. “If the government wants to tackle fiscal deficit it can cut the concessions being given to big industries and control government expenditure,” he said.