Censuring the soaring fuel prices that has amplified people’s distress, chief minister Mamata Banerjee today urged Prime Minister Narendra Modi to slash taxes levied by the Centre and diesel to temper its inflationary trend. She clarified that her government has voluntarily given a rebate to both petrol and diesel as a “token of empathy for the common people”.

Miss Banerjee expressed her “deep concern and anguish” for “pursuing policies which have resulted in this significant hardship for the common people of the nation.” Shocked at the retail petrol price crossing Rs 100/litre in many states, Miss Banerjee wrote that the diesel prices were hiked by the central government eight times since 4 May 2021, of which prices were hiked six times in June with the prices increasing four times in one week itself.

“The rather cruel hike in petrol and diesel prices have affected the common people most adversely and has directly impacted the dangerously rising inflation in the country,” Miss Banerjee wrote. “It is my earnest request that the taxes charged by the central government on petrol and diesel be substantially reduced to give much-needed relief to the common people and also to check the overall inflationary trend in the country today,” Miss Banerjee wrote to Modi.

Miss Banerjee said that in the last six years, the government of India’s tax collection from oil and petroleum products has increased by 370 per cent in the financial year 2014-15 due to constant hike in central excise duty on oil and petroleum products including cess and surcharges burning the pockets of the common people. I am also alarmed by the fact that the government of India is constantly increasing the cess component of central tax revenues which results in denying the states its legitimate share of 42 per cent of tax collected by government of India since cess accrues wholly with the government of India, without sharing with the states. I sincerely urge you to desist from the anti-federalist trend developed in the last few years,” read her letter.

Miss Banerjee also pointed out that the prices of eggs, edible oil and fruits have risen substantially. The Wholesale Price Index in the country rose by 12.94 per cent in May compared to last year, she said adding that the Consumer Price Index rose by 6.30 per cent where the prices of edible oils increased by 30.8 per cent, eggs by 15.2 per cent, fruits by 12 per cent and health related items by 8.44 per cent. Amid Covid-19, the government of India collected revenue amounting to Rs 3.71 lakh crore (including Rs 3.71.125 crore from oil and petroleum products in 2020-21), she complained.

The chief minister’s letter comes at a time when the Trinamul Congress and the BJP spar over the soaring petrol prices. While the TMC slammed PM Modi for the petrol price hike, the BJP questioned why the state government is not reducing its duties on petroleum products to bring down the prices. In February this ahead of the Assembly polls, Miss Banerjee had travelled to and from Nabanna in an electric scooter protesting against fuel price hike.

She rode pillion to state minister Firhad Hakim and even took control of the wheels for a stretch returning to her residence at Kalighat when petrol prices breached Rs 100-mark in some states. The government had then offered a Re 1VAT cut on petrol and diesel. TMC will hit the street from 10 am to 5 pm on 10 and 11 July across the state to protest against fuel price hike.

TMC general secretary Partha Chatterjee said, “Due to inordinate rise in fuel prices, it is affecting agriculture sector, transportation cost is on the rise and prices of essential commodities like edible oil, sugar are already too high.” He said the Centre has turned a deaf year to this vital issue. During the protest rallies TMC will follow Covid-19 protocols.