In Covid-19 meet, Modi's 'fuel' ammo to target Opposition

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

Ahead of the Assembly polls in his home state Gujarat and BJP-ruled Himachal Pradesh, Prime Minister Narendra Modi sought to put Opposition parties in the dock over the fuel price hike targeting them for not reducing VAT on fuel and counterpointing the lesser fuel tax in states ruled by the saffron party.

Leaders from Congress, Trinamool Congress, Shiv Sena and other Opposition parties reacted sharply with some saying that the state has limited provisions to mop up revenue. They also accused the Centre of shirking responsibility.

Modi-Opposition fuel face-off came at a time when the Opposition is seeking to re-orient the political narrative and target the BJP over issues like inflation and employment and has sort of taken up a campaign against the ruling party over the rise in petroleum prices. The Opposition attack has not only been through public statements but also memes and sarcasm on social media in the run-up to the polls for two-BJP ruled states this year-end and the crucial set of state polls next year. A few days ago, Congress had reminded the government that since Brent crude fell to $98, the Modi government should reduce petrol and diesel prices.

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The Prime Minister, who was addressing an online meeting with Chief Ministers to review the Covid-19 situation amid a rise in its graph, chose to flag the hiatus between fuel prices in the BJP and the non-BJP ruled states, saying that they should cut the taxes now as they did not do it five months back when some other states (BJP-ruled) had done it.

Naming the states, which have not reduced VAT on fuel, Modi flagged the higher price of petrol and diesel in six Opposition-ruled states -- Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Jharkhand and Rajasthan.

"In November last year, the central government reduced excise tax to bring down petrol and diesel prices. While some states reduced taxes in sync with the central government's thinking, some others chose not to do so. I will not go into the issue of how much revenue these states mopped up by doing so. I would request them to give benefits to their residents by reducing VAT now even as there has been a delay of six months by now in doing so," Modi said. He also pointed out how petrol price is less in some BJP-ruled states neighbouring the Opposition-ruled states.

Alluding to the Russia-Ukraine war, the Prime Minister said that the situation of war has affected the supply chain and the challenges are increasing day by day. Referring to the global crisis, Modi laid emphasis on further enhancing the spirit of cooperative federalism and coordination between the Centre and states in such a scenario. He also stressed that he was "not criticising anyone".

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The comments sparked off a flurry of reactions from the Opposition parties.

Addressing a press conference at AICC headquarters, Congress spokesperson Pawan Khera hit back reminding the Prime Minister that "cooperative federalism is not a one-way traffic. It is a two-way traffic" and asked Modi to "talk about the Rs 26 lakh crore his government has earned through central excise on petrol/diesel in the last eight years. He should show a larger heart and hand pass on its benefit to consumers. He should show the way to reduce central excise and then ask others to reduce the excise" soon after the Prime Minister read out comparative prices of petrol in different states.

BJP's ID department in-charge Amit Malviya tweeted a chart showing how Opposition-ruled states are charging more for fuel.

"In the CM’s meet today, PM spoke about Opposition-ruled states not reducing taxes on petrol and diesel. They are busy profiteering and playing politics even during the pandemic, while consumers suffer. Here is just a glimpse of how non BJP ruled states are squeezing out citizens. Among the states that didn’t reduce state taxes on fuel, Maharashtra, Bengal, Tamil Nadu and Rajasthan figure prominently. Their Chief Ministers owe an explanation to the people for not reducing taxes and bleeding them profusely while India was navigating the global turbulence," Malviya said. He also tweeted figures of the earnings made by the Opposition-ruled states by not reducing VAT on petrol prices and under a caption "Before Blaming Modi Government."

Some reactions on social media asked the BJP to ask the NDA government in Bihar, headed by Nitish Kumar, too to reduce fuel tax while others asked about the price of petrol and diesel in BJP-ruled Madhya Pradesh. Petrol price in Bhopal is more than Rs 118, which is higher than it is in many Opposition-ruled states.

Shiv Sena Rajya Sabha MP Priyanka Chaturvedi tweeted, "Making a COVID meeting about politics! The Central Government has earned 26 lakh Cr out of central excise on fuel, increased 18 times even when oil prices hit rock bottom. The GST share to states still owed, compensation component to state done away with & now pointing fingers.Important reminder that central government’s share in total taxes on fuel is 68% but the responsibility is that of the states! Figure that!"

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