Bhubneshwar: The ruling BJD in Odisha headed by chief minister Naveen Patnaik appears to be in a fix after the Union government on Thursday lowered the fuel price by Rs 2.50 per litre. The regional party which had made fuel price a major issue for quite some time now apparently to thwart the “rising popularity” of petroleum and natural gas minister Dharmendra Pradhan, the BJP’s chief ministerial candidate for 2019 polls, — on Friday observed a “mysterious” silence on the call by Union finance minister Arun Jaitely to slash state VAT rates.
In fact, Odisha has imposed a 26 per cent VAT rate on petrol and diesel prices.
The state which earned Rs 3,000 crore from VAT on fuel in 2014, has seen its revenue jumping to around Rs 7000 crore per in the last fiscal from the same source.
Any cut in its VAT rate on fuel prices would adversely affect the state coffers and stand in the way of implementation of the ongoing populist measures.
Knowing that the regional party was on the back foot following the cut in fuel prices, the BJP state unit on Friday went offensive by holding a massive rally in state capital Bhubaneswar seeking immediate cut in state’s VAT rate on fuel prices.
Sources in the state bureaucracy said the state government would be hit hard if it lowers the VAT rate on fuels. The 2.50 cut in fuel price by the Centre has already resulted in the state the losing in 64 paisa per litre of fuel.
An attempt to cut Rs 2.50 per litre to match the Centre’s gesture would mean the cash-starved state facing serious challenges to fund its ongoing populist programmes.
“In the name of protest against fuel price hike, the BJD leaders and workers were indulging in political stunts only sans any genuine concerns for the people. Their prime objective was to defame the Union PNG minister Dharmendra Pradhan who has emerged as a potential leader in the state challenging the non-performances of the BJD government and large-scale corruption patronised by it for the last 18 years. The BJD and its leaders now stand thoroughly exposed,” said BJP vice president Samir Mohanty.
The only response by the state government so far has come from finance minister Sashibhusban Behera who said, “Odisha will take appropriate action after examining the Union finance minister’s fuel price cut announcement.”
