Kerala - Kozhikode   

`Hike in fuel price will cause hardship'

Staff Reporter

Veerendra Kumar calls for small cuts by Central, State Governments

KOZHIKODE: M.P. Veerendrakumar, MP, has said that the recent hike in the price of petrol and diesel by the Centre, will cause undue hardship to the general public.

In a statement here on Thursday, Mr.Veerendrakumar refused to accept the justification to the hike in fuel prices, as the common man would be hit adversely by the hike.

He said the price of petrol on an average had gone up by Rs.3.30 a litre, and diesel by Rs.2.21 in the State.

The rise in price would impose a heavy burden on the ordinary citizen.

The price of petrol when it reached Kerala was Rs.20.92 a litre.

The price that in effect was to be paid by the consumer in Kozhikode was Rs.46.85 because of the tax imposed by Centre and the State Governments.

The taxes imposed included eight per cent excise tax, Rs.14 special excise tax, two per cent cess besides 28 per cent sales tax imposed by the State Government.

Mr.Veerendrakumar said if a small cut is arranged in the tax imposed by the Centre and State Government, the heavy hike in price can be avoided.

He said if the Government suspended the payment of allowances to the foreign oil companies, it can avoid the sizable loss suffered by it.

Chamber protests

An emergency meeting of the Calicut Chamber of Commerce and Industry has demanded the imposition of the control price concept for petrol and diesel. It was pointed out that the removal of this specification had resulted in a 70 per cent hike in fuel price.

The prices have been hiked 14 times by the National Democratic Government (NDA) Government and five times by the United Progressive Alliance (UPA) Government, it was pointed out.

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