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Oppn tears into AAP govt over fuel price hike, power subsidy rollback

The Punjab cabinet on Thursday hiked the prices of petrol and diesel by 61 paise and 92 paise per litre, respectively, by increasing local levies and withdrew the scheme of subsidised power to domestic consumers having up to 7KW load

Updated on: Sep 6, 2024, 05:28:14 IST
By , Ludhiana
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Opposition parties, including the Shiromani Akali Dal (SAD) and the Congress, hit out at the Aam Aadmi Party (AAP)-led state government over the hike in fuel prices and the rollback of power subsidy in Punjab.

Ludhiana MP Amarinder Singh Raja Warrin said Illusion of relief by initial free power units is shattered as families, businesses are forced to pay exorbitant rates beyond this limit (HT File)
Ludhiana MP Amarinder Singh Raja Warrin said Illusion of relief by initial free power units is shattered as families, businesses are forced to pay exorbitant rates beyond this limit (HT File)

The Punjab cabinet on Thursday hiked the prices of petrol and diesel by 61 paise and 92 paise per litre, respectively, by increasing local levies and withdrew the scheme of subsidised power to domestic consumers having up to 7KW load, as the state’s AAP government sought to avert a larger financial crisis.

The decisions were taken at a meeting of the council of ministers, chaired by chief minister Bhagwant Mann, in Chandigarh.

The Federation of Industrial and Commercial Organization (FICO) also opposed the hike in value-added tax (VAT) on fuel.

The power subsidy scheme that was introduced by the previous Charanjit Singh Channi-led Congress government in 2021, provided 3 per unit as subsidy on electricity for up to 7 KW load.

Punjab Congress chief Amarinder Singh Raja Warring termed these hikes as a ‘blatant betrayal’ to the common people, who he said are already grappling with the ever-increasing cost of living.

“The AAP government’s decision to raise electricity rates by 3 per unit is nothing short of outrageous,” Warring said.

“While they continue to boast about providing 300 units of free electricity per month, this steep hike for additional consumption creates a substantial financial burden on households. The illusion of relief offered by the initial free units is quickly shattered as families and businesses are forced to pay exorbitant rates beyond this limit,” he went on to add.

Warring expressed concern over the impact of these hikes on the daily lives of citizens. “The increase in petrol and diesel prices will have a cascading effect on the prices of essential goods and services,” he said.

Former SAD cabinet minister Maheshinder Singh Grewal said the AAP government ‘has betrayed the aam aadmi (common man) and this move will result in a hike in consumption charges for residential power for a majority of consumers across the state.’

The SAD leader said the government had gone back on its word to reduce VAT on petrol and diesel by half.

FICO president Gurmeet Singh Kular and other officials put out a joint statement, opposing both the decisions and pushing for an immediate rollback.