Congress urges Centre to cut fuel taxes to cushion Iran war impact on prices

New Delhi: Congress on Friday demanded that the Centre cushion the impact of the Iran war on fuel prices by slashing taxes. The development comes as the Opposition is keeping an eye on the fallout of the war raging in West Asia on fuel prices and availability of cooking gas and its impact on inflation, which could emerge as a major plank in poll campaign in the runup to elections in four states and one Union Territory.

The Opposition party raised the demand after Hindustan Petroleum Corporation increased the price of premium (power) petrol by ₹2 per litre and Indian Oil Corporation increased the price of industrial diesel by about 25% per litre, even as prices of normal petrol and diesel remain unaffected so far.

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Congress spokesman Pawan Khera said, "The Indian government has collected ₹26 lakh crore from taxes on petrol and diesel in the last 12 years. Why can't the government now, in a crisis-like situation, pass on that benefit to consumers? Why should consumers suffer?"

"Chickens come home to roost," said another party spokesperson Supriya Shrinate, pointing out that premium petrol had turned costlier by ₹2 per litre, industrial prices were up ₹22 per litre and food delivery firm Zomato had also increased its platform fee.

Political circles are watching how price hike will play out in poll-bound states since fuel prices include both central and state taxes.