Centre pockets Rs 67 as excise levies, whereas Kerala gets only Rs 4; It is dubious to ask state to forgo excise tax

​​​​THIRUVANANTHAPURAM: Chief Minister Pinarayi Vijayan has lashed upon the centre over the hike in fuel prices during the Assembly session. The chief minister has said in the last six years the centre has increased fuel prices by 307 per cent. Chief Minister Pinarayi Vijayan said in reply to C H Kunjabdu’s call for zero hour motion on rising fuel prices.

The chief minister pointed out that as the centre gave up the price regulation system of fuel prices in 2010 and 2014, the prices began to rise exponentially. “Basic excise levies, special additional excise duty, farm infrastructure cess, additional excise duty and road infrastructure cess are the four kinds of taxes imposed by the centre on fuel prices. Among these, except the basic excise levies, no other related tax is shared with the states,” he said.

“According to calculations of the central government, among the Rs 67 worth excise levy imposed on fuel prices, only Rs four is shared with the states. Last year alone, the fuel price hiked 19 times,” he added.

Only the centre is the only benefactor of the fuel price hike. The claim that when fuel price in the international market reduces, domestic fuel price will come down is not backed by facts. In reality, whenever crude oil prices have reduced, the centre has maintained the domestic prices at a constant level by increasing the excise levies imposed on petroleum products.

The chief minister, who said that rising fuel prices will backfire on the development of consumer states like Kerala, also added that it is a dubious suggestion that states must forgo their share of excise duty imposed on fuel prices.