Chennai: With the prices of fuel sky-rocketing by the day and the BJP-led government doing precious little to contain the prices, Puducherry Chief Minister V. Narayanasamy claimed that he was able to reduce the price of petrol and diesel in his state by Rs. 4 and Rs. 3 per litre respectively, by effecting a cut in VAT.
Going hammer and tongs at the BJP-led central government for the price rise, he claimed that the “wrong economic policy” of the Narendra Modi government had led to the present crisis. “The Puducherry State is first in the country to reduce the price of fuel. We reduced the VAT on diesel and petrol by 17 and 21 per cent respectively resulting in the reduction in the price of diesel and petrol by Rs. 3 and Rs. 4 per litre. In Tamil Nadu the VAT is on the higher side,” Mr. Narayanasamy said on Tuesday.
He contended that the price of fuel sky-rocketed as the Centre fixed the price on a daily basis. “The reason attributed is the increase in the dollar value and crude oil prices. But during the Congress rule when Manmohan Singh was Prime Minister the price of crude oil was around $138 per barrel. Our government was able to give petrol and diesel at Rs.60 and Rs.52 per litre then. With the present rate of $80 per barrel, the BJP government should be able to give it at less than Rs. 60,” Mr. Narayanasamy said.
Speaking to reporters here on Tuesday he accused the Centre of burdening the people by ensuring the fuel was sold at high price. “Even the price of LPG, which was less than '700 during the Congress rule has now increased to over '800 per (non subsidised) cylinder. The Centre is unable to control the prices of essential commodities,” the CM said and demanded that Prime Minister Narendra Modi reply to the nation.
He called upon other States to emulate Puducherry and reduce the people’s burden by bringing down the VAT on fuel and demanded that the Centre revise the excise duty on fuel.
