"There are times when you are compelled to take hard decisions. 'There is no doubt that when the prices of diesel go up, everybody feels the pinch. But if you see all the facts you will realize that there was no other option,' Janardan Dwivedi said.
The Congress on Saturday asked party-ruled states to reduce taxes on petroleum products to give a reprieve to the common man, just as the Centre had reduced customs and excise duties. However, the Maharashtra government is yet to take a decision on this.
Maharashtra is among a handful of states with the highest sales tax on petrol and diesel. The revenue from the sales tax on petrol and diesel is over Rs5,000 crore per annum in Maharashtra and the latest hike in the price of diesel is expected to add Rs100 crore to the state coffers.
An official from the finance department said that reducing the tax could only be considered on Monday. “No meeting took place on Saturday as finance minister Ajit Pawar was away in his constituency,” he said.
Meanwhile in Delhi, Congress general secretary Janardan Dwivedi justified the government's decision to hike fuel prices citing compulsions and pointing out that in other countries in the region, the prices of diesel, LPG and kerosene are much higher than in India.
"There are times when you are compelled to take hard decisions. There is no doubt that when the prices of diesel go up, everybody feels the pinch. But if you see all the facts you will realize that there was no other option," Dwivedi said.
The government on Friday increased diesel price by Rs3 per litre, domestic LPG by Rs50 per cylinder and kerosene by Rs2 per litre and slashed customs and excise duties on crude oil and products, sacrificing Rs49,000 crores in revenues.
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