Bengal faces revenue loss of Rs 1,141 crore due to lower fuel price: Mamata

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Claiming that West Bengal is eyeing a total revenue loss of Rs 1,141 crore due to reduction in petrol and diesel duty, Chief Minister Mamata Banerjee on Monday attacked the Center for allegedly favoring ruled states by the BJP by paying them their due.

Banerjee’s assertion came two days after the central government cut excise duty on petrol by Rs 8 per liter and on diesel by Rs 6 per litre, reducing the prices of both to some extent. When central rights are reduced, states also lose revenue.



There is an automatic state tax deduction of Rs 1.80 on petrol and Rs 1.03 on diesel (in West Bengal). We offer a discount of 1 Re per liter for both. So the total discount becomes Rs 2.80 on petrol and Rs 2.03 on diesel,” she told reporters.

The West Bengal government levies 17% VAT on diesel and 25% on petrol.

After spending around Rs 500 crore because of the Re 1 discount, we are going to face a total revenue loss of Rs 1,141 crore, she said and wondered why the Center had not reduced fuel tax.

States do not receive any share of cess.

“The concession given by the Center to BJP-ruled states is not given to states ruled by opposition parties. We are not getting our due. The Center is depriving us of what we are supposed to get,” said Banerjee.

The CM said the Narendra Modi-led central government earned Rs 18,23,324 crore in excise duty on petroleum products from 2014-15 to December 21, 2021, by ‘looting the common man’.

Giving a year-on-year figure for rising petrol and diesel prices, Banerjee said that soon after the Modi government took office, oil prices were reduced to the globally, but they had increased in India.

Meanwhile, gas pump owners across the state said they would not buy fuel on Wednesday in protest as they lose revenue from the cut in duties in the absence of any protection mechanism. prices for dealers.

We welcome this measure and believe that the government should reduce taxes further for the good of the common man. However, retail pumps will lose between Rs 4 and 22 lakh due to lower prices as there is no price protection mechanism for us, the Joint Secretary of Dealers Association told PTI. petrol pumps of West Bengal, Prasenjit Sen.

In Kolkata, the price of petrol fell from Rs 9.09 to Rs 106.03 per liter and that of diesel from Rs 7.07 to Rs 92.96 per liter on Monday.

Prices are increased by a few paise but the drop is steep. This is pushing us to take heavy losses on our existing stock, Sen said.

On Tuesday, dealers will stage a symbolic protest to turn off lights at 3,000 odd petrol pumps across the state between Rs 7 p.m. and 8 p.m. and enforce a no-buy policy for one day.

Sen said dealers will be forced to step up the protest if oil companies do not address their grievances.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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