On Fuel Price Hike, Chidambaram: Only Poor And Middle-Class Will Pay

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On Fuel Price Hike, Chidambaram: Only Poor And Middle-Class Will Pay

On Monday, P Chidambaram, a senior Congress leader criticised the government for increasing the fuel prices twice in two days.
State-run oil companies raised the prices of petrol and diesel by 60 paise per litre for the second consecutive day on Monday. On Sunday, they have increased the fuel prices too at the same amount.

“Fuel selling prices raised twice in two days, following tax hikes two weeks ago. This time to benefit oil companies,” Chidambaram tweeted.

“Government is poor, it needs more taxes. Oil companies are poor, they need better prices. Only the poor and middle class are not poor, so they will pay,” the former Union finance minister said.

This hike took place after oil marketing companies restarted their dynamic pricing system on Monday. This dynamic pricing system restarted for daily revision of fuel prices after a gap of more than 80 days.

Fuel Selling Prices Raised Twice In Two Days

Earlier, on March 16 transportation fuel prices were last revised under the dynamic pricing policy. Moreover, there were only a few times when the price hike took place that too only when the concerned state governments hiked VAT or cess.

Several state governments had raised taxes imposed on transportation fuels to increase revenues during the nationwide lockdown.

The Centre had raised the excise duty on petrol by Rs 10 and on diesel by Rs 13 per litre on May 6 to recompense for revenue loss due to Covid-19 lockdown but it did not affect the retail sale price of the fuels.

Despite there is a fall in the value of crude oil, the government has raised the prices of petrol and diesel.

The price of crude oil has been severely affected due to the lockdown imposed. This lockdown is because of the COVID-19, a disease spread by the coronavirus.
Earlier, defending the hike, the finance minister said that the government was facing an acute finance shortage to meet the obligations and in the first month of April in the new financial year against the target revenue collection of Rs. 12,141 crores, the collection was just Rs. 1178 crores.

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