Palaniappan Chidambaram, India’s minister of finance, speaks at a news conference in New Delhi, India. (Photographer: Sondeep Shankar/ Bloomberg News)

Chidambaram Says Government’s “Excessive Taxes” To Blame For Rise In Petrol Prices

Senior Congress leader P Chidambaram today blamed the NDA government for rise in petrol and diesel prices, saying it was happening due to "excessive taxes.”

In a series of tweets, the former finance minister also demanded that petrol and diesel be brought under the GST ambit immediately.

"Relentless rise in prices of petrol and diesel is not inevitable. Because, the price is built up by excessive taxes on petrol and diesel. If taxes are cut, prices will decline significantly," he said. Chidambaram said the central government blaming the states is a "spurious argument.”

Petrol and diesel prices in the country touched their highest levels on Monday mainly due to fall in rupee and a sharp rise in crude oil rates. Petrol price in Delhi rose to a record Rs 79.15 per litre and diesel climbed to a fresh high of Rs 71.15 per litre, according to price notification of state-owned fuel retailers.

This follows a 31 paise per litre hike in prices on Monday. Rates have breached the previous high of Rs 78.43 per litre hit on May 28. On that day, the rate in Mumbai was Rs 86.24 per litre. A litre of petrol in Mumbai costs Rs 86.56 on Monday.