Cut fuel prices in 2 days or we'll hold dharna: SAD to Cong-led Punjab govt

The opposition Shiromani Akali Dal (SAD) on Saturday gave an ultimatum to the Congress-led Punjab government, threatening an agitation unless it cut down the fuel prices by Rs 5 by reducing VAT on petroleum products within two days.

The SAD's demand comes days after the Centre announced a Rs 2.50 a litre cut in the petrol and diesel prices. Finance Minister Arun Jaitley asked state governments to follow suit by cutting a sales tax or VAT by a similar amount to give consumers a total benefit of Rs 5 per litre.

"The Congress government and its finance minister Manpreet Badal have turned a blind eye to the suffering of the common man as well as farmers by refusing to reduce petrol and diesel prices," senior SAD leader Bikram Singh Majithia said in a statement.

"This despite an announcement by Pradesh Congress (Committee) president Sunil Jakhar that the state would reduce its own taxes on petro-products after the Centre did the same. Now that the Centre has taken this step, will Jakhar hold a dharna outside the office of the finance minister," Majithia asked.

"It is clear that Jakhar was trying to befool the people of Punjab and farmers' by holding pointless dharnas, knowing well that his government did not have any intention of reducing fuel prices," he alleged.

The SAD, a BJP ally, demanded that the Congress government cut the petrol and diesel prices by Rs 5 per litre as it is charging the highest tax in northern India.

He claimed the state has collected an annual tax of Rs 5,800 crore and now must pass on some of this benefit to the people.

On Friday, the Punjab government "failed" to arrive at a decision on reducing the fuel prices. Chief minister Amarinder Singh has called a meeting of officers on Monday to take a final call on this issue.