Finance Minister Pranab Mukherjee today rejected in the Lok Sabha demands for rollback of the increase in the prices of petrol and diesel and reduction of excise duties hiked in the Budget saying the "financial condition does not permit".
"I would've love to respond to the demands (of the opposition members) but my financial condition does not permit me to do so. Please excuse me. Therefore, I am unable to do so," he said replying to a two-day general discussion on the Budget for 2010-11.
The entire Opposition including the BJP, Left Parties, SP and RJD walked out protesting against the minister's rejection of their demand.
Just after the reply, BJP leader Yashwant Sinha asked Mukherjee whether the government would consider withdrawing the "dangerous proposal" of the raise in prices of petroleum products, especially diesel, which he said would lead to cascading effect on prices. "All of us have demanded it".
In his Budget, Mukherjee restored the basic customs duty of 5 per cent on crude, 7.5 per cent on diesel and petrol and 10 per cent on other refined products. He also raised the excise duty on petrol and diesel by Re 1 per litre each to begin a process of fiscal consolidation. Immediately, oil companies had raised the prices of petrol and diesel across the country.
Besides, the Budget also raised excise duty across the board on all non-petroleum products by 2 per cent to 10 per cent and brought in more services in the tax net.