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To cut or not to cut: As Congress deals with fuel price cut dilemma, here is how they have been demanding price cut from Modi govt

While the NDA-ruled states have already cut tax on fuel, the Congress party seems to be unwilling to follow the advice of the Modi govt to reduce VAT in states ruled by it

The Modi government had given a huge relief to the middle class by slashing fuel price as part of a “Diwali gift.’ While reducing excise duty on petrol and diesel, the centre had also urged the state governments to cut VAT on the same so that the prices come down even further. The Press Information Bureau (PIB) had informed that a total of 22 States and Union Territories, mostly run by the BJP or the National Democratic Alliance (NDA) partners, have given relief to the masses. The Centre had made the first move by reducing the Central Excise Duty on diesel by 10% and on petrol by 5%. This was followed by the relief on local taxes granted by the BJP/NDA run States, with Karnataka and Union territories of Ladakh and Puducherry being the largest beneficiaries.

Despite the hue and cry of the Congress party over the soaring prices of fuel in the country, none of the States ruled by it including Rajasthan, Maharashtra, Punjab and Chhattisgarh have reduced the local tax on petrol/diesel. It seems that the Congress party is in a huge dilemma to decide whether to cut VAT on fuel in states run by it. While the NDA-ruled states have already cut the tax, the Congress party seems to be unwilling to follow the advice of the Modi govt to reduce VAT. But this makes it appear hypocritical and insensitive to the consumers, as the party continues to attack the central govt over price rise, but refuses to cut the fuel price on its own.

The Congress leadership, including Sonia Gandhi and Rahul Gandhi, have been attacking the Modi govt over price rise. Here are some notable instances when they did so.

Sonia Gandhi wrote letter to PM Modi, accused govt of making profits

Earlier this year in February, Congress supremo Sonia Gandhi had written to Prime Minister Narendra Modi and accused the government of ‘profiting from people’s misery. “I fail to understand how any government can justify such thoughtless and insensitive measures directly at the cost of our people. Your Government has increased excise duty on Diesel by 820% & on Petrol by 258% over and collected upwards of ₹21 lakh crore in the last six and a half years. This unaccounted-for windfall is yet to be passed to the people for whose benefit it was ostensibly collected,” Gandhi had accused the Central government.

Screengrab of the HT report from February 2021

Congress sets car on fire in Punjab, held demonstratiosns in Haryana

In June this year, the Congress party organised protests at petrol pumps in Punjab and Haryana against the incumbent BJP government. They had demanded rollback of the hike in fuel prices, along with prices of cooking oil and gas. The large-scale demonstrations were held in Mohali, Kurali, Patiala, Bathinda, Ludhiana, Jalandhar, Amritsar, Gurgaon, Ambalana, Panipatand Rohtak. The Congress protestors had even resorted to arson in Amritsar, where they doused a vehicle on fire to send out a message that people were not able to buy cars.

While speaking about the protest, Punjab Congress president Sunil Jakhar had alleged, “The arrogant government at the Centre has constantly been increasing fuel prices instead of providing relief to the people during the current crisis. During the Congress-led UPA regime, despite international crude oil prices being very high, diesel prices hovered around ₹50, which is now near ₹90 per litre, while petrol is touching ₹100 per litre.”

Congress workers set car on fire in Amritsar, image via Hindustan Times

Congress protested in Maharashtra, Chattisgarh against fuel price hike

Later in July this year, Congress workers continued their protest against the Union government in the Congress-ruled State of Chattisgarh. In order to grab media attention and public eyeballs, Congress chief Mohan Makram toured the Kondagaon area in an auto rickshaw. He claimed that it was a means to protest against the ‘anti-people’ policites of the Modi.

“The prices of essential commodities have also risen due to the hike in fuel prices, causing problems for the common man,” he added. In Raipur, Congress leader Vikas Upadhyay and his group of protestors disrupted traffic and carried empty LPG gas cylinders on their back. They even tried to ambush the BJP office but were stopped by the police near the Lalganaga Mall.

Screengrab of the news report by the Daily Pioneer

In the following month, the grand-old-party organised cycle rallies in Mumbai and other parts of Maharashtra against hike in diesel and petrol prices. The Congress rally, which began from Hanging Gardens to Raj Bhavan, was led by State Chief Nana Patole. The party, which is an ally in the Maha Vikas Aghadi government, met the Governor and handed out a amemorandum about issues faced by people. Patole had claimed, “People of the country are getting no respite from rising prices. Bharatiya Janata Party (BJP) leaders are advising States to reduce taxes. States do not get their rightful GST compensation, but the Centre is happily collecting taxes,” Mr. Patole said

Screengrab of the news report by The Hindu

Rahul Gandhi and his social media activism

In October, Congress scion Rahul Gandhi came out as the frontrunner in the party’s crusade against the fuel price hike, although his activism was limited to social media mostly. In a tweet on October 14, he wrote, “The old folk stories tells us about the tales of greed and misgovernance and the indiscriminate collection of taxes. Initially, the people would become dissilusioned but later they would bring an end to such a misgovernance.”

Rahul Gandhi had prophesised the end of BJP regime if they did not mend their ways of supposed tax extortion and misgovernance. About 10 days later, the Congress scion tweeted again, “Tax dacoity is increasing in the price of petrol. If there was an election, there might have been some chances of cuts in fuel price. #TaxExtortion”

Priyanka Gandhi follows the footsteps of her brother

“Modi ji’s government has made big records in the matter of giving trouble to the public. Highest unemployment under the Modi government. Most government properties being sold by Modi government. The same government had also increased the petrol rates the most in a year,” Priyanka Vadra had alleged on October 24 in a tweet.

Congress loyalist cries foul after Centre cuts excise duty on fuel

After the Modi government announced a cut in the excise duty of both petrol and diesel, a baffled Congress spokesperson took to Twitter to call it a ‘Jumla’. In a tweet, he said, “Please see the Jumlas of “Modi-nomics”! In Year 2021, Price of Petrol were hiked by ₹28 & Diesel by ₹26/litre. After losing 14 bye elections & 2 Lok Sabhas, reducing Petrol-Diesel price by ₹5 & ₹10 is tom-tommed as ‘Diwali Gift’ of Modi Ji!Hey Ram…..” Randeep Surjewala had managed to find an ‘election angle’ in the government’s decision.

Interestingly, non-NDA ruled states like Maharashtra, NCT of Delhi, West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Kerala, Meghalaya, Andaman & Nicobar, Jharkhand, Chattisgarh, Punjab and Rajasthan have not undertaken any reduction in VAT prices in petrol or diesel. Although Congress has been protesting against fuel price hike and their leaders have been tweeting against it in unison, the States ruled by them are yet to see signs of relief.

Congress considers fuel tax cut but delays decision

As the Congress party comes under intense scrutiny and criticism for not reducing VAT on petrol and diesel, like NDA-ruled states have done, reportedly the states ruled by the party will cut the tax soon. According to a report by News18, three Congress-ruled states are going to cut the VAT.

However, there is no official announcement from any of the Congress-ruled states till now. Reports suggest the cabinets in the states are considering the matter, but the delay shows that the Congress party is actually is not in favour of cutting fuel taxes when it is in power. This shows the extreme contrasting behaviours of the party, which demands price cuts as the opposition party at the national level. But in the states where it is in power, it is reluctant to cut VAT.

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Dibakar Dutta
Dibakar Duttahttps://dibakardutta.in/
Centre-Right. Political analyst. Assistant Editor @Opindia. Reach me at [email protected]

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