Left sticks to its demand for duty cut

Even as Petroleum Minister Mani Shankar Aiyar called on Finance Minister P Chidambaram to discuss the issue of excise duty on oil prices, the CPI(M) renewed its demand that the government withdraw the hike in excise duty of diesel and petrol in the Union Budget.

In the latest issue of People's Democracy, the CPI(M) mouthpiece, the party says the finance minister said in the Budget that reduction in import duty of crude and reduction in excise duty of kerosene and LPG had made the hike in excise duty of diesel and petrol "revenue neutral". This was not correct.

"There is incremental revenue of Rs 3,000 crore per annum on excise duty hike in petrol and diesel. As a matter of fact, increase in excise duty at a time when international crude price is increasing, is double burden on consumer" the party said.

The party urged the United Progressive Alliance (UPA) government to convert the cess of Rs 1,800 per ton on crude oil produced by the Oil and Natural Gas Commission (ONGC) and Oil India Ltd, that fetches Rs 5,500 crore for the government - to be used as a price stabilisation fund that could absorb the impact of price fluctuation in the global market.