‘Where has Rs 20 lakh cr collected in excise on fuel gone,’ Congress asks govt; slams it on high fuel prices

The Congress on Sunday slammed the Centre over fuel prices touching an "all-time high" and demanded that the excise duty hike affected by the Modi government during its tenure be immediately rolled back to give relief to the masses.

The party's attack on the government came a day after petrol and diesel prices in the country touched new all-time highs after rates were increased for the fourth time in the week.

Congress spokesperson Ajay Maken said in Delhi on Sunday in a press conference that petrol prices have reached an all time high of Rs 85.70 per litre and diesel has reached Rs 75.88 a litre.

"What is more shocking is that during the Congress' regime when we left power in May 2014, the international crude oil was USD 108 per barrel, but petrol and diesel prices were at Rs 71.51 and Rs 57.28 per litre respectively, which have increased to Rs 85.70 and Rs 75.88 in Delhi today despite the crude oil prices coming down to half of that time," he said.

The Modi government has earned Rs. 20,00,000 crore in the last six-and-a-half years by increasing the excise duty on petrol and diesel alone, Maken said.

"The most important question now is where has this more than Rs 20 lakh crore gone," he said.

"Has it gone in the pockets of Mr (Narendra) Modi's crony capitalist friends? This is what the Congress wants to know from the government," Maken asked.

The increase in prices took the petrol price in Delhi on Saturday to Rs 85.70 per litre and in Mumbai to Rs 92.28.

Diesel rate climbed to Rs 75.88 a litre in the national capital and to Rs 82.66 per litre in Mumbai, the price data showed.

In his remarks, Maken asked, "Our jawans' dearness allowance is being cut, our MSMEs are under pressure from banks to repay loans, under pressure from taxation authorities, there is huge unemployment across the country, farmers are committing suicide, so where has this amount gone?"

In May 2014 when the BJP assumed power, the excise duty on petrol was Rs 9.20 per litre and on diesel was Rs 3.46 per litre, he said.

In the last over six years, the BJP government has increased the excise duty on petrol by an additional Rs 23.78 per litre and on diesel by an additional Rs 28.37 per litre, he said.

"If we decrease the excise duty hike affected by the Modi government on petrol and diesel i.e. Rs 23.78 and Rs 28.37, prices will come down to Rs 61.92 (petrol) and Rs 47.51 (diesel)," he said.

"So the Central government must immediately withdraw the central excise duty hike that it has charged in the last over six years and the petrol prices should come down to Rs 61.92 and diesel to Rs 47.51," he said, hitting out at the government over the fuel prices touching an "all-time high".

Maken also slammed the government over LPG cylinder prices, saying under the UPA government 12 cylinders were given on subsidy which has now been withdrawn.

An LPG cylinder in the open market coats about Rs 700 whereas without subsidy during the UPA's governance it was Rs 414, he said.

Here are highlights of his remarks:

Today, in Delhi, the Petrol prices have reached all time high of Rs 85.70 a litre. Diesel has reached Rs. 75.88 litre and what is more shocking is the fact that during the Congress’ regime, when we left power in May, 2014, the International crude oil prices were 108 dollars per barrel. It has come down to all most half, which is 55.52 dollar per barrel and despite the crude oil prices having fallen to almost half, the petrol and diesel prices have surprisingly gone up.

As I have said petrol has gone up from Rs. 71.51 to 85.70 and diesel has increased whopping Rs 57.28 to 75.88. This is the increase of Petrol and Diesel prices and the sole reason. Why there is such an increase of petrol and diesel prices, is because the Central Government has increased the excise duty on diesel by 8 times and on petrol by 2-1/2 times. The additional excise burden to the common man, to the consumer is Rs. 23.78 per litre on petrol and Rs 28.37 per liter on diesel, which is 8 times 820% to be precise on diesel and 258% to be precise on petrol, this is the increase on excise duty on diesel and petrol because of which the burden has fallen on the common consumer.

The Central Government has earned more than 20 lakh crore rupees from this additional excise. What we are saying is, that if the Central Government reduces the additional excise, withdraws the additional excise, which it has charged in the last six years, the petrol prices will fall down to Rs 61.92 and diesel price will fall down to Rs 47.51.

So, the additional burden of excise is to the extent of 8 times on diesel and 2-1/2 times on petrol and this is the reason, why the petrol and diesel prices have gone all time high. Never in the past, in the history, the petrol and diesel prices were so high.

As far as the LPG is concerned, I would like to remind you that during our time we used to give 12 cylinders as subsidized for LPG that almost stands withdrawn. At the moment, the LPG in open market is around Rs. 700 per cylinder, whereas LPG in open market without subsidy during our time again as I have said 12 cylinders per year, the subsidized rate were much lower, the subsidized LPG cylinder has gone up from Rs 414 per cylinder to Rs 700.

So, the Central Government should immediately withdraw the additional excise duty, which it has increased during the last six years. The petrol prices will fall down to Rs. 61.92 and diesel to Rs. 47.51 as soon as the Central Government withdraws the additional excise duty, which it is charging on Diesel and Petrol.

The most important question now is, where has this more than 20 lakh crore rupees gone? The Central Government has collected through petrol and diesel excise more than 20 lakh crore rupees in last 6 years. So, where this huge amount has gone? Our Jawans, our Government employees, their DA is being cut. Our small entrepreneurs, our MSMEs, they are continuously under pressure from the bank to repay the loans and they are continuously under the pressure of the taxation authorities.

There is huge unemployment across the country. The farmers are committing suicide, so where has this amount, this more than 20 lakh crore rupees amount has gone? Has it gone into the pockets of the friends of Mr. Narendra Modi, the ‘Mitra Punjipatis’ as we call. The friendly big ‘Sarmaydars’ as we call. So, where this money has gone? This is what the Congress Party wants to know from the Government.

First of all, it should reduce the increase in excise on petrol and diesel, secondly the Congress Party wants to know where the 20 lakh crore rupees, which the Central Government has collected from the excise duty hike of diesel and petrol, where that money has gone?

(With PTI inputs)