In poll-bound Bengal, TMC govt reduces petrol, diesel prices by Re 1

The TMC held three big roadshows in Kolkata on Sunday in protest against hike in fuel prices.

In poll-bound Bengal where the ruling Trinamool Congress (TMC) has made rise in fuel prices an election issue, the government on Sunday said the state’s sales tax on diesel and petrol would be reduced by a rupee from the midnight of February 22.

A supporter of Trinamool Congress party adjusts his face mask as he walks in a rally protesting fuel and cooking gas price hike in Kolkata, India, Saturday, Feb. 20, 2021. (AP Photo/Bikas Das) (AP)

State finance minister Amit Mitra made the announcement at a virtual press conference, saying the move will provide some respite to people.

Till Saturday, petrol sold for ₹91.77 a litre in Kolkata while price of diesel was ₹84.55 a litre.

"The Centre earned ₹32.90 per litre in tax and cess from petrol on February 20, while the state got around ₹18.46. For each litre of diesel, the Centre earned was ₹31.80 per litre as against ₹12.77 earned by the state," Mitra said.

Mitra alleged that the Centre had imposed cess to avoid devolution with states, which he said was "against the characteristics of federalism".

The TMC held three big roadshows in Kolkata on Sunday in protest against hike in fuel prices. The Congress and the Left parties had been highlighting the issue since last week.