Soaring fuel prices leave people in distress: Mamata Banerjee writes to PM Narendra Modi

The chief minister said she found it ‘shocking’ that the retail price of petrol had crossed Rs 100 a litre in several states, including some parts of Bengal

Mamata Banerjee: Telegraph picture

Meghdeep Bhattacharyya   |   TT  |  Calcutta   |  06.07.21:  Mamata Banerjee on Monday wrote to Narendra Modi about the “great distress” the masses were subjected to because of the steep spike in fuel prices, expressing her “deep concern and anguish” over his government’s pursuit of policies that had allegedly resulted in substantial difficulties for the common man.

The Bengal chief minister said she found it “shocking” that the retail price of petrol had crossed Rs 100 a litre in several states, including some parts of Bengal.

She urged the Prime Minister to reduce the taxes on petrol and diesel levied by the Centre to offer relief to the common people and check the overall inflationary trends in the country.

“I have come to learn that petrol and diesel prices were hiked by your government 8 times since May 4, 2021 and out of these, prices were hiked 6 times in the month of June, 2021 only and shockingly, 4 times in one week,” read Mamata’s letter which pointed out that in the middle of the pandemic, the Centre had collected a “staggering” revenue of Rs 3.71 lakh crore from oil and petroleum products in the 2020-21 fiscal.

On June 29, Darjeeling had joined many other parts of the country where petrol had breached the three-digit mark. The price crossed Rs 100 at some north Bengal towns on July 2.

Oil companies are allowed to mark up petrol on account of transport cost if the fuel is hauled to distant places. As a result, prices differ from one location to another even within a state despite the fuel being subjected to the same amount of central and state levies.

The common man is bearing the brunt of surging oil prices, which are increasing the cost of commute as well as general merchandise.“This rather cruel hikes in petrol and diesel prices have affected the common people most adversely and has directly impacted the dangerously rising inflation in the country,” wrote Mamata.

The chief minister pointed out that over the past six years under Modi (since the 2014-15 fiscal), the Centre’s tax collection from oil and petroleum products has increased by 370 per cent because of hikes in central excise duty on such products, including cesses and surcharges.

So far, the Modi government has shown no desire to do so and instead called on states to cut local taxes.

“Here I may mention that government of West Bengal has voluntarily given a rebate to both petrol and diesel as a token of our empathy for common people,” she wrote.

Bengal did walk the talk and cut prices of both petrol and diesel by Rs 1 a litre on February 22 ahead of the Assembly elections. The rebate, which had been in place till June 30, has been extended for another three months.

“It is my earnest request that the taxes charged by the central government on petrol and diesel be substantially reduced to give much-needed relief to the common people and also to check the overall inflationary trend in the country today,” said Mamata.

The chief minister wrote she was also “alarmed” by the Centre “constantly” increasing the cess component of central tax revenues.

“… which results in denying the states its legitimate share of 42 per cent of tax collected by government of India, without sharing with the states. I sincerely urge you to desist from the anti-federalist trend developed in the last few years,” read her letter.