Lack of management by the Narendra Modi government is responsible for the surge in retail fuel prices, said Amit Mitra, finance minister of West Bengal.
Prices of petrol and diesel have risen to a record, driven by costlier crude oil and a weakening rupee. But Mitra blamed a “bumbling government”, saying that excise duty on auto fuels kept increasing even as international prices fell after July 2014.
If crude oil falls then your price should have fallen. If you could not cut the price, at least you should have developed a reserve, but you didn't.Amit Mitra, Finance Minister, West Bengal
The central government has responded to criticism over high fuel prices by asking states to cut value-added tax. The other solution being proffered is bringing petrol and diesel under the ambit of goods and service tax. Most states have refused to cut their taxes, pointing to nine hikes in excise duty by the central government in the last four years.
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