The Hindu : Karnataka / Bangalore News : A rude shock on eve of Ganesh Chaturthi

Online edition of India's National Newspaper
Wednesday, Sep 07, 2005

Karnataka

Karnataka - Bangalore

A rude shock on eve of Ganesh Chaturthi

Special Correspondent

BANGALORE: The hike in the prices of petrol and diesel effected by the Centre came as a dampener for the people of the State even as they were preparing themselves to celebrate Ganesha Chaturthi on Wednesday. The hike takes the price of petrol beyond the dreaded Rs. 50-a-litre mark, which the citizens had spoken of for long, resigned as they were to periodic price increases.

The people of the State are paying the highest price in the country for petroleum products, thanks to high local taxes. The State got its first petroleum refinery, the Mangalore Refineries and Petrochemicals Ltd. in 1993, but its refining capacity is not adequate to meet the needs of the State.

Successive Finance Ministers of the State have resisted lowering the taxes on petroleum products and the demand for withdrawing or reducing entry tax. It was introduced in lieu of octroi. The petroleum products remain outside the VAT regimen.

The former Finance Minister Siddaramaiah too resisted lessening the burden on the people caused by high petrol and diesel prices.

The State has a new Finance Minister in P.G.R. Sindhia and it should be seen as to how he will respond to the new situation.

In line with the decision taken by the national leadership, the State unit of the Bharatiya Janata Party has decided to launch a State-wide agitation protesting the price hike. The State unit President Jagadish Shettar has warned that the Centre's decision will have a cascading effect on the general price level.

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