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Cong condemns steep rise in LPG price

Cong condemns steep rise in LPG price

Erode May 9
Erode District Congress Minority Wing strongly condemned the steep rise in the price of cooking gas.In a release, the wing president J Suresh, vice presidents KN Batcha and MM Harshad said the price of 14.2 kg LPG refill increased by Rs 50 to Rs 1015 (Rs 1034 in Erode without subsidy) on May 7 causing great hardship to poor and middle class. During the Congress rule in 2014, the LPG price was Rs410 and the government subsidy was Rs 827. 

When the price rose  by Rs 10 per refill during the Congress rule, the BJP made much hue and cry and staged many stirs. But, now, the subsidy of even Rs 25 did not reach many consumers' bank accounts. Price of a 19-kg commercial LPG cylinder has been hiked by Rs 102.50 on May 1 and the cost is Rs 2,355.50 forcing the hotels and tea shops to hike the price of eateries  steeply. It hit all sections of people much and rise in the cost of many products triggering the inflation rate. 

In the poll campaign in 2014, the PM Modi assured to bring down the price of petrol to Rs 40 per litre. But, on May 8, petrol price is Rs111.28 and diesel prices Rs 101.58 per litre increasing the transportation costs of all goods affecting people much. Poor and middle class, who use 2 wheelers to go to their work spots, have to chose pubic transport.
Today's crude oil price per barrel is  US $ 105.86 due to Ukraine-Russia war.  But, the average price in  2022 was $97.14 2021 $68.17 ,2020 $39.68 ,2019 $56.99 ,2018 $65.23 ,2017 $50.80 ,2016 $43.29 ,2015 $48.66 ,2014 $93.17 ,2013 $97.98 , 2012 $94.05 ,2011 $94.88,2010 $79.48 ,2009 $61.95,2008 $99.67 ,2007 $72.34 ,2006 $66.05 ,2005 $56.64 ,2004 $41.51 . 

During Congress rule from 2004-2014, the international price of crude oil was high but the price rise of petroleum goods was minimal.  The international price  was low during the BJP rule till the war. Even then, the PM did not bring down the price of petrol to Rs 40 per kg and diesel and gas.

The price was hiked periodically and in fact, the Centre  slapped cess on petrol and diesel to get the entire income out of it to avoid sharing of some income to states if it hiked the excise duty. By this way, it avoided to share the benefit of fall in international price to people. 

After strong criticism from public it reduced the excise duty  of petrol and diesel by Rs 5 and 10 per litre on Nov 3, without reducing the price of LPG. It clearly stopped the price hike for few weeks due to elections in 5 states and hiked the prices steeply afterwards.
If the price of petrol is Rs 100 per litre , the Centre nets Rs 32.80 as excise and cess.  As on 27th January 2022 in TN, price charged to dealers was Rs 48.23 per litre, Excise duty (Levied by the Central Government) Rs27.90 per litre, Average dealer commission ₹3.8 per litre, VAT (Levied by the State Government) ₹21.46 per litre {% of (fuel price charged to dealers + excise duty + avg. dealer commission)}, Retail selling price at Tamil Nadu ₹101.39 per litre.

Over the last 15 years, VAT on petrol comprises approximately 12.5% to 16% of Tamil Nadu's tax revenue. Thus, reduction of VAT on fuel may result in lower revenue collection so that the state did not reduce VAT, despite it reduced the price of petrol by Rs 3 per litre.  So, hefty tax levied on petroleum products by both state and Centre also burdened people much. So,  as assured, the BJP rule should bring petroleum products under the GST (18/28 percent) to reduce the price, they suggested. Unfortunately, in the GST Council meetings, both the Centre and state governments did not even keen to discuss the issue because they didnot want to lose their income while the price of petroleum products were hiked frequently in the name of international price, they rued. 

If the Centre did not take any step to roll back the price hike of LPG, petrol and diesel, the wing would stage a massive stir at Erode, they warned.