Rs 25 per litre cut possible in fuel prices, claims P Chidambaram

Former Finance Minister P Chidambaram on Wednesday attacked Narendra Modi-led Central government over the rising fuel prices and claimed that a Rs 25 cut in the prices of petrol and diesel was possible.

“The central government is earning a total of Rs 25 on every litre of petrol—Rs 15 due to fall in crude oil prices and Rs 10 by levying extra taxes – and the money rightfully belongs to the common people,” Chidambaram said in a series of tweets.

The former finance minister said that despite the fact that there was enough vacuum to cut prices of the two major petroleum products, the government will fool the people by cutting the price by Rs 1 or 2 per litre.

The fuel prices continued its upward trend for the ninth straight day on Tuesday and recorded a new high across the states. In Delhi, the prices of petrol touched Rs 76.87 per litre, while the diesel was available at Rs 68.08 per litre.

In Mumbai, the diesel reached a record all-time high to Rs 72.48 per litre and the petrol touched Rs 84.70 per litre.

The Opposition Congress has accused the Narendra Modi-led central government of “breaching the trust” of the people as the Bharatiya Janata Party (BJP) came in power with a promise of reducing inflation and fuel prices.

The Congress released a poster, which reads—Vishwasghat (breach of trust) -- on completion of 4 years of Modi government.

Senior Congress leader and AICC national general secretary Ashok Gehlot said that the Centre was looting the people as fuel prices were sky-rocketing.

“There is a sense of fear and mistrust among people today. Their trust has been broken. Fuel prices are sky-rocketing. This is a loot. They (Centre) don’t even care about it,” Gehlot said while addressing media in Delhi.

Meanwhile, a Cabinet meeting was scheduled to be held on Wednesday where the issue of rising fuel prices could be taken.

Junior finance minister Shiv Pratap Shukla said that Prime Minister Narendra Modi was taking the matter seriously and the government may soon come up with a solution.

“Crude is imported. Foreign companies are raising the price. Petroleum Min has said Petrol&Diesel should be brought under GST. Point is it can’t be brought before the Council until&unless all state fin ministers agree. PM is taking the matter seriously,” Shukla said.