The government on Tuesday said the recent increase in fuel prices has translated into an additional burden of less than a rupee on cooking gas and 50 paisa on kerosene per day as an united opposition stalled parliament proceedings over the rising food inflation.
Minister of Petroleum and Natural Gas Murli Deora in a statement in the Lok Sabha said the "primary objective" behind the June 26 hike in prices of petroleum products was the need to reduce the subsidy burden on oil marketing companies and thereby allocate more funds to social sector schemes in the areas of health, education and food security.
While taking the decision, he said, the government was "quite conscious" of the burdens on the common man. "Only the bare minimal burden has been passed on to the consumers".
"The increase in price of domestic LPG by Rs.35 per cylinder is likely to increase the daily expendituire (of a household) by less than Rs.1. Similarly, the increase in price of kerosene by Rs.3 per litre is expected to increase the daily expenditure for an average rural household only by less than 50 paise," Deora said.
Blaming the state governments for high rates of taxation on petro products, he said the sales tax on petrol on diesel is as high as 33 and 24.7 percent respectively.
"Some of the state governments are levying sales tax as high as 12.5 percent on kerosene," he said.