Centre can cut fuel prices by Rs 25 a litre, but won't: Chidambaram

Former finance minister and senior Congress leader P Chidambaram on Wednesday claimed that the Modi government can cut petrol prices by a steep Rs 25 per litre but would not do it.

“Central government saves Rs 15 on every litre of petrol due to fall in crude oil prices. The central government puts an additional tax of Rs 10 on every litre of petrol,” Chidambaram said on Twitter as petrol prices raced to Rs 78.43 per litre in Bengaluru.

He said the central government was getting a bonanza of Rs 25 on every litre of petrol. “This money rightfully belongs to the average consumer,” he said.

“It is possible to cut up to Rs 25 per litre, but the government will not. They will cheat the people by cutting the price by Rs 1 or 2 per litre of petrol,” Chidambaram said amid talk of a possible reduction in fuel prices.

The Centre is mulling lowering of excise duty on petroleum products and also coaxing state governments to slash the value-added tax as fuel prices continued to increase almost every day.

Fuel prices remained static for 19 days in the run-up to the May 12 Karnataka Assembly elections prompting the Opposition to accuse the Modi government of forcing oil marketing companies to stop the daily revision in prices.

The fuel prices have witnessed an upward trend and in the last nine days, petrol price has risen by Rs 2.24 a litre and diesel by Rs 2.15.

On Tuesday, BJP President Amit Shah said the government was concerned about the increasing fuel prices and was working on a solution to keep prices in check.