TN CM Stalin, Kerala's Vijayan target PM Modi over high fuel prices

The political slugfest over Prime Minister Narendra Modi flagging higher fuel prices in many Opposition-ruled states escalated on Thursday with Tamil Nadu Chief Minister M K Stalin saying it was like hiding a whole pumpkin in a plate of rice, and his Kerala counterpart Pinarayi Vijayan asserting people's suffering cannot be mitigated by blaming the states.

As opposition chief ministers launched a fresh offensive against the prime minister on the issue of tax cuts on petroleum products, Petroleum Minister Hardeep Singh Puri blamed high taxes imposed by the opposition-ruled states on aviation turbine fuel for air ticket prices not coming down, and also accused them of "hypocrisy" for targeting the central government over the issue.

Raising the issue of higher fuel prices in many opposition-ruled states, the prime minister on Wednesday called it "injustice" to people living there and urged the governments there to reduce VAT in "national interest" to benefit the common man.

Modi raised the issue of many states not adhering to the Centre's call for reducing the Value Added Tax (VAT) on petrol and diesel after his government slashed excise duties on them in November last, and asked them to work in the spirit of cooperative federalism in this time of global crisis.

While Congress leader Rahul Gandhi alleged that Modi's federalism is "not cooperative but coercive", his party colleague Veerappa Moily, a former Petroleum minister, said the prime minister's call amounts to "travesty of justice".

Chief Minister Stalin said people were aware of the fact behind the issue and pointed to his government effecting a Rs 3 a litre cut on petrol earlier.

"The Prime Minister had said some states were not cooperating with the Centre in its efforts to reduce the fuel prices and attributed the reasons for the rise in the price to the states as they are not reducing their taxes.

"To comment on it in one line: it is like hiding a whole pumpkin in a plate of rice," the DMK supremo said referring to the Tamil saying ('Muzhu poosanikkayai sothla maraikiradhu') to buttress his claim that Modi was not revealing the facts.

Since 2014, whenever international crude rates dipped, the NDA government did not pass on the benefit to the customers but only pocketed the additional revenue earned from the differential, he said replying to an issue raised by Congress legislature party leader K Selvaperunthagai in the Assembly on the PM's virtual meeting with the chief ministers.

While the excise duty levied on petrol and diesel has to be shared with states, that has been reduced, thus affecting the states' revenue, he said.

"While the cess and surcharges are not meant to be shared with the state governments, these have been exorbitantly hiked, thus burdening people and the union government is enjoying the revenue earned from this."

"People are aware of this. Who shows real keenness in reducing petrol rates and who pretends and lays the blames on others--I leave it to the people to decide," Stalin said.

Chief Minister Vijayan, in a Facebook post, said that in a federal system attempts should not be made to blame certain States for the inflation, due to a variety of reasons, in the country when the Central government was responsible for the financial management.

He further said a ruler who is aware of the current economic condition of a state (Kerala) which spends a significant amount on social welfare should not criticise it for rising fuel prices and resultant suffering of the people, especially when in the last six years it has not even once increased the sales tax on petrol or diesel.

West Bengal Chief Minister Mamata Banerjee alleged that the agenda of Prime Minister Modi's meeting on Wednesday was not Covid situation as announced, but blaming state governments for the high prices of petrol and diesel.

The Centre also wanted to shrug off its responsibility in reducing the prices of fuel, she claimed while talking to reporters in Kolkata.

In a statement, Moily said the the prime minister's call to opposition states to reduce VAT as against any semblance of reduction in excise duty by the Centre amounts to "travesty of justice".

Rahul Gandhi alleged that the prime minister is abdicating his responsibility by blaming states for the high fuel prices even when the Centre has taken 68 percent of all fuel taxes.

"High Fuel prices - blame states. Coal shortage - blame states. Oxygen shortage - blame states," he said in a tweet.

"68% of all fuel taxes are taken by the Centre. Yet, the PM abdicates responsibility. Modi's Federalism is not cooperative. It's coercive," Gandhi charged.

Keeping up his attack on the opposition, Puri said Prime Minister Modi has ensured affordable air travel to common citizens with his vision but states ruled by them create impediments. They manufacture protests against "oil prices" but fleece people to fill their coffers, he alleged.

"Such hypocrisy of opposition ruled states!"

"Ever wondered why air ticket prices haven't come down? Aviation Turbine Fuel constitutes about 40% of the cost of airline operations. But West Bengal, Maharashtra & Delhi impose massive 25 per cent plus VAT on ATF while BJP states UP & Nagaland; & UT of J&K charge just 1 per cent," he tweeted.

However, Trinamool Congress spokesperson Saket Gokhale hit back, claiming that about 21 per cent of airline revenues go to the central government as taxes, and they are left with "no profits". "And that is why air ticket prices are going up. Stop fooling people," he said in reply to Puri.

Telangana BJP president Bandi Sanjay Kumar claimed that the petrol price in BJP-ruled states is Rs 10-15 less than the price in Telangana.

"Father-son got irked by @narendramodi ji's request to reduce fuel costs. In BJP ruled states petrol price is ?10-15 less than us. If govt slashes VAT, petrol will reduce by ?30," he said, referring to the attack by Chief Minister K Chandrashekar Rao and his son K T Rama Rao against the prime minister.