KOLKATA: Served another bitter pill on a day she attended the cordial swearing-in ceremony of President Pranab Mukherjee in New Delhi, chief minister Mamata Banerjee was back on the warpath against the Centre on Wednesday as a realignment of rates raised the prices of both petrol and diesel in Bengal.
The recalibration of fuel rates — to reflect changes in local levies after the Centre withdrew subsidy to oil companies on the state's surcharge — made petrol and diesel costlier in seven states but brought down the price of cooking gas in 12, among them Bengal. In Kolkata, a litre of petrol will now cost Rs 76.13 after an increase of Rs 2.52. Diesel, whose price was increased by 92 paise, will sell for Rs 44.66 in the city but domestic LPG will be cheaper by Rs 4 to cost Rs 401 per cylinder.
The price pinch apart, the Centre's move is bad news for the state's coffers that depend significantly on tax from fuel, whose demand is inelastic. Cutting short her Delhi trip, a livid Mamata flew back to the city in a huff. "I wake up every morning fearing prices may go up on some front or the other. We can't tolerate this," the CM said, hinting at a "political confrontation" with the Centre yet again if the prices are not rolled back. "Don't force us into a political confrontation. If this (the fuel price) is not rolled back, we will be forced to take to the streets," Mamata said.
The CM has asked state finance minister Amit Mitra to write a strong letter of protest to Prime Minister Manmohan Singh. "We demand an immediate rollback of oil prices," she said. Mamata is also dismayed with the ways of the UPA government, which didn't bother to consult the partners before slashing the oil subsidy. "The Centre has taken a unilateral decision of withdrawing oil subsidy. We were not kept in the loop. Why did they take the decision without consulting the state governments and UPA allies? I was in Delhi in the morning and had no clue on what was on store. This is cheating people," The Trinamool chief held the hike in oil prices would affect people when inflation is high.
Crying foul over the Centre's decision the CM said: "The oil companies and the petroleum ministry are working in tandem. They withdrew the subsidy in the name of recalibrating oil price rates. Why this was done nine years after the Centre announced the compensation scheme in 2003?". The CM, however, doesn't owe an explanation to Bengal consumers how petrol and diesel prices went down in 11 states such as Karanataka, Goa, Gujarat and Odisha despite the Centre's decision. The fact remains that few states like Bengal continued to impose a state surcharge of 20% on local taxes (sales tax and cess) at a time when many states abolished this surcharge after they switched to VAT in 2005. Now when the Centre has withdrawn the scheme to subsidise the state surcharge, oil prices in the state went up.
"Bengal has been burdened with a huge debt of Rs 2 lakh crore left behind by the CPM government. The Centre allowed it then. But it is dragging its feet when we have been asking for a moratorium on the huge debt. Ours is a poor state and the government is at odds to foot the salary bills," Mamata said.
The recalibration of fuel rates — to reflect changes in local levies after the Centre withdrew subsidy to oil companies on the state's surcharge — made petrol and diesel costlier in seven states but brought down the price of cooking gas in 12, among them Bengal. In Kolkata, a litre of petrol will now cost Rs 76.13 after an increase of Rs 2.52. Diesel, whose price was increased by 92 paise, will sell for Rs 44.66 in the city but domestic LPG will be cheaper by Rs 4 to cost Rs 401 per cylinder.
The price pinch apart, the Centre's move is bad news for the state's coffers that depend significantly on tax from fuel, whose demand is inelastic. Cutting short her Delhi trip, a livid Mamata flew back to the city in a huff. "I wake up every morning fearing prices may go up on some front or the other. We can't tolerate this," the CM said, hinting at a "political confrontation" with the Centre yet again if the prices are not rolled back. "Don't force us into a political confrontation. If this (the fuel price) is not rolled back, we will be forced to take to the streets," Mamata said.
The CM has asked state finance minister Amit Mitra to write a strong letter of protest to Prime Minister Manmohan Singh. "We demand an immediate rollback of oil prices," she said. Mamata is also dismayed with the ways of the UPA government, which didn't bother to consult the partners before slashing the oil subsidy. "The Centre has taken a unilateral decision of withdrawing oil subsidy. We were not kept in the loop. Why did they take the decision without consulting the state governments and UPA allies? I was in Delhi in the morning and had no clue on what was on store. This is cheating people," The Trinamool chief held the hike in oil prices would affect people when inflation is high.
Crying foul over the Centre's decision the CM said: "The oil companies and the petroleum ministry are working in tandem. They withdrew the subsidy in the name of recalibrating oil price rates. Why this was done nine years after the Centre announced the compensation scheme in 2003?". The CM, however, doesn't owe an explanation to Bengal consumers how petrol and diesel prices went down in 11 states such as Karanataka, Goa, Gujarat and Odisha despite the Centre's decision. The fact remains that few states like Bengal continued to impose a state surcharge of 20% on local taxes (sales tax and cess) at a time when many states abolished this surcharge after they switched to VAT in 2005. Now when the Centre has withdrawn the scheme to subsidise the state surcharge, oil prices in the state went up.
"Bengal has been burdened with a huge debt of Rs 2 lakh crore left behind by the CPM government. The Centre allowed it then. But it is dragging its feet when we have been asking for a moratorium on the huge debt. Ours is a poor state and the government is at odds to foot the salary bills," Mamata said.
