Petrol and diesel cess not likely to be reduced; Left Front to use fuel cess as political struggle against Centre

THIRUVANANTHAPURAM: It is hinted that the state government is unlikely to reduce the cess of two rupees announced in the state budget for petrol and diesel. Meanwhile, there is political pressure on the government to reduce the cess amid widespread protests and the opposition beginning a satyagraha in the assembly.

Although it has been rumoured that the cess will be reduced to Rs 1, sources close to the CPM have not confirmed this. A section of the Left Front is of the view that it will be a political surrender for the government if it gives in to the opposition's pressure. Some leaders of the CPM are of the opinion that the cess should be reduced when the economic situation improves. Although the CPI has not opposed the move to increase cess, there is opposition, including from the AITUC, citing the issue of price rise.

The Left will launch a campaign by claiming that the UDF is supporting the Modi government and the BJP, which are financially suffocating Kerala by closing off all the sources of revenue for the state.

The Left Front is attempting to interpret the petroleum cess as a political struggle. Finance Minister KN Balagopal said in the Assembly on Monday that the Centre is collecting Rs 30 per litre of petrol and Rs 27 per litre of diesel as cess even though the Centre has no right to collect cess on petroleum products.

The CPM points out that although the Modi government imposed a surcharge of Rs 20 on petroleum products, neither the UDF nor the BJP protested. The CPM alleges that the Ambanis and Adanis are reaping the benefits of the central surcharge. However, the cess has been imposed in Kerala to ensure various things, including welfare pensions. The CPM argues that the Kerala government's policies are a response to the right-wing argument that the money spent on subsidies and welfare activities should be given to corporates.