Modi Govt profiteering at the cost of common people: Cong

Attacking Modi government over its decision to increase excise duty on Petrol and Diesel, Congress today accused it of "blatantly profiteering at the cost of common people" saying this amounts to further "bleeding" the farmer already crushed by an agrarian crisis.
"In a move that amounts to blatantly profiteering at the cost of common people, for whose benefit Governments are elected - excise on Diesel and Petrol were increased for the seventh time today by Rs 2.00 and Rs 0.37 respectively.
"Instead of passing on the benefits of record low international crude oil prices to the consumers, Government is consistently making a windfall gain for itself. The hike in excise affected today is expected to earn the Government, an additional Rs 4,300 crore, which will be over and above the gain of about Rs 4,000 crore that the last hike in excise duty accrued," party spokesperson Randeep Surjewala said.

In a statement, Surjewala noted that the international prices of crude oil have fallen to an unprecedented low level of below 33 USD per barrel, the lowest in 12 years and are equivalent to year 2004 crude oil prices.
"Regrettably, Modi government is indulging in profiteering by imposing unprecedented taxes in shape of excise and customs on crude oil - especially on diesel which amounts to further bleeding the farmer already crushed by an agrarian crisis and the common commuter who is being made to pay through his nose for travelling in trains and buses," the AICC Communication department Chairman said in a press statement.

His reaction came as Government today hiked excise duty on petrol by Rs 0.37 per litre and by Rs 2 a litre on diesel, the second increase in duties in just over two weeks, to mop up a little less than Rs 4,400 crore.

However, there will be no increase in retail selling price of petrol and diesel as state-owned oil firms had not passed on the full benefit of a reduction in international oil prices to consumers on January 1.
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The Congress spokesperson alleged that instead of giving relief to people of India on account of reduction in international crude prices, BJP government earned a tax revenue of Rs 78,000 crore from petroleum products alone in the year 2014-15.

"In the year 2015-16, Modi government has kept a tax collection target of Rs 1,10,000 crore on sale of petroleum products. Thus, BJP government that was elected on the promise of 'achhe din' is actually taking away the lion's share from the pocket of common man," Surjewala said.
Comparing the prices before and after Modi government took over, the Congress leader said that the entire profit is being "pocketed" by the government instead of giving relief to the common man.
"When Modi took over as Prime Minister on May 26 last year, the International price of crude oil was 108.05 USD per barrel. Today, it has fallen below 33 USD per barrel. Refinery price of petrol today is only Rs 21.87 per litre while petrol is sold at Rs 59.35 per litre in Delhi. Hence, as against the final refinery pricing of Rs 21.87 per litre of petrol, Modi government is earning a profit of Rs 37.48 for every litre of petrol.

"Similarly, refinery price of diesel is only Rs 21.13 per litre while the market price is Rs 45.03 per litre in Delhi. Hence, on a final refinery price of Rs 21.13 per litre of diesel, Modi government is making a profit of Rs 23.90 per litre. What is most startling is the fact while oil refinery earlier paid a price of Rs 6,331 per barrel, this has come down to Rs 2,178 today," he said.