The political step is being seen as a compromise between the Congress decision to raise diesel prices, and the Trinamool Congress’s demand for cutting the increase by Rs 3 per litre. This midway formula is similar to the Core Group’s decision to ask Congress-ruled states to raise the cap on subsidised cooking gas cylinders to nine a year from the current six, but keeping the ceiling lower than the 12 that the Trinamool has demanded, sources said.
The Cabinet Committee on Political Affairs last Thursday raised the price of diesel by Rs 5 per litre, of which Rs 1.50 was due to an increase in excise duty. Should the duty hike be rolled back, the net relief at pumps — inclusive of value added tax which varies from state to state — would be between Rs 1.70 and Rs 2 per litre of the fuel, the sources said.
The rollback decision would be conveyed to Mamata Banerjee but the official announcement might come later so opposition parties that have called a countrywide strike on Thursday cannot claim credit, the sources said.
The downward moderation in diesel, they said, could be offset by raising excise duty on petrol, when its price usually heads south in winter.
“As a thumb rule, a Re-1 cut in excise duty on diesel is equivalent to a Rs-3.50 cut on petrol. When petrol prices fall, the difference could be mopped up by raising excise duty,” the sources said.
The CCPA had approved a Rs 5.30 per litre cut in excise duty on petrol to keep its retail price unchanged.
Cong-ruled states to raise LPG cylinder cap to 9
Congress-ruled states were asked Wednesday to raise the number of subsidised cylinders from the proposed six to nine per household in a year. “The party has decided that our Chief Ministers in the Congress-ruled states will provide nine subsidised cylinders annually to each household,” said AICC general secretary Janardhan Dwivedi. ENS
BJP AS A NATIONAL PARTY TO SUPPORT DECISION TAKEN BY THE GOVERNMENT OF DIESEL LPG AND FDI IN RETAIL IN NATIONAL INTEREST. AND CUT VAT IN STATES. Once the decision have been taken after deliberations discussions and dexterity it would not now be worth asking for a roll back as that would attract down grade of Inidia's rating and very bad impression in the world with other nations. There is no doubt that the Congress have created a mountain out of a mole. It was evident at the start of Jasmine revolution in the Arab world and especially Libya that crude prices are to sky rocket. Yet the then FM Sri Pranvda have provided very low provison for subsidy in his budjet. Infact, that is the first you may call it illusion or dexterity or cheating or ulterior motive. Hence the problem have now expanded to a ballon. Also if the prices of diesel were raised by 50 Paise per month since the start of Libyan crisis this problem of downrating would not have arisen. For all this mess it is only and only Shri Pranvda respononssible and now the whole country is in chaos. Mamta Benerji is right in her stand but her means are not proper. Once have joined the UPA 2 there have to be no ego display which she have been doing at all times. Her personal honesty is highest amongst politicans but her means are that of Black Mailing. The second major defect f congress is excessive use of media to justify its on thinking policies etc. But now the whole country knows that political drama carry no weight. Fact of the matter no one can deny is that Congress have become prisoner of its on deeds in 2G common wealth Adarsh scam and now coalgagte. Without solving it straight forwardly they resort to domination and avoidance. The congress's present measures are really commandable and very good for the country and nothing should be rolled back. But they will certainly roll back and again politics will prevail over economics and so Congress becomes a party of no principals and for this reason Mamta have scored more points than congress by sticking to her position.