The politics over petrol prices continues as the government today stuck to its guns despite public protests including by key ally the DMK today. Taking a cue from Kerala and Uttarakhand, Delhi also cut vat on petrol, but ironically hiked vat on CNG. All this even as wire agencies reported that the Bombay HC today issued notice to the centre on a PIL against the recent petro price hike, reports CNBC-TV18’s Aakansha Sethi and Nayantara Rai.
After all the hue and cry over last week's steep petrol price hike, a categorical Oil Minister today firmly ending speculation regarding a possible diesel and LPG price hike.
Jaipal Reddy, Oil Minister says, "I am not going to touch the price of LPG, kerosene or diesel."
According to exclusive information available, the Empowered Group of Ministers (EGoM) on fuel prices, headed by the finance minister is now likely to meet this Friday. So what will the EGOM decide? Just today Reddy gave a presentation in north block on the inflationary impact of a diesel price hike. He also reiterated his stand that dual pricing for diesel is not even on the table.
Is all this a precursor for a fuel price hike to come sometime later, perhaps like last year in the third week of June? And what about the much talked about roll back of petrol prices? Reddy today found support in the finance minister on that burning issue.
Pranab Mukherjee, Finance Minister adds, “Already the Petroleum Minister has explained in detail the position with respect to increase of petroleum prices. I have nothing to add.”
IOC today said it will reduce petrol prices even if it’s by just by 50paise. but the possible rollback will depend on the findings of its fortnightly review on June 1.
Meanwhile the finance minister is finalising his letter to chief ministers to cut state duties on petroleum products. And today Delhi, the 3rd congress state to have re-jigged duties so far, to reduce petrol prices by nearly Re 1.26 to Rs 71.48 per litre. But CNG, that impacts the aam admi more, is now costlier as VAT has been raised by 5%
Sheila Dikshit, Chief Minister of Delhi says, "We have taxed that what impacts the people the least."
All eyes are now on the centre. Will it cut the Rs 14.78 per litre excise duty on petrol?
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