Here’s good news for all those who criticize Modi Government on increasing fuel prices! Check what it is?

For those who always criticize and underestimate Modi Government, here is a good news for them. PM Modi Government is not sitting idle and planning for a long-term solution to the issue of increasing fuel prices.

Union minister Prakash Javadekar on Saturday while addressing the reporters has said that the central government is working in coordination with states as they are also equal shareholders to find out the permanent solution to the increase in fuel prices.(DNA)

He informed that earlier also the Central Government has re-regularised the whole price set up which was deregularised during the Congress regime and also supported by Trinamool Congress. Petrol prices were deregularised in June 2010 during the Congress-led United Progressive Alliance government under Manmohan Singh. In June last year, oil companies decided to revise prices daily instead of fortnightly as per the international practice.

Niti Aayog, the policy think tank of the Government has also earlier requested the states to look into the matter and stated that states need to take charge in trimming down the duties on the fuel.

Rajiv Kumar, vice chairman of  NITI Aayog has said “The states must cut their taxes because they have got ad valorem (percentage-based) taxes”.  He further added as the prices have gone up, the states have been getting a windfall gain, which can hardly be continued. So they must reduce it below 27 per cent. According to him a 3-4 percentage point cut is easily doable.

He also advised Central Government that it should find the fiscal space and then cut the excise duties. Cautioning the government, he said that “The government should make sure that it doesn’t do anything to weaken the nascent uptick in the economy, and simultaneously find enough fiscal space to absorb the higher oil price by attempting things not done in the past”.

According to the sources, earlier the government has also conducted meetings with state-owned Oil and Natural Gas Corp (ONGC) to bear fuel subsidy to help cut petrol and diesel prices. Oil producers ONGC and Oil India Ltd had till June 2015 made good as much as 40 per cent of the under-recoveries or subsidy arising out of selling fuel at below market price. The government is trying to bring back the same subsidy sharing mechanism in some form in order to relieve the burden on the people.

The government is looking at all means and working to find the best solution. The people of the nation should be little patient and stop blaming the Modi Government.

Credits: DNA