Balagopal’s third budget speech had a popular start. Announcements touched all areas of Kerala. But in the end everything was overturned. A regular style of making money by squeezing people. With this, Balagopal’s announcements became the most controversial budget that Kerala has seen in recent times. Although allocated to all sectors, none of this is directly available to the people. But all the responsibility should be borne by common people. Nobody thought that cess would reintroduced on petrol and diesel. A 20 percent increase in the fair price of land is also a blow to the aspirations of the common man.
Alcohol prices are rising again. This will benefit the narcotic ganja mafia. They turn to synthetic drugs to get high. This will become a serious social problem. A hike in petrol and diesel prices will lead to inflation. Meanwhile, reports are coming out that the central government is taking steps to reduce fuel prices. If that happens, fuel tax will be reduced for Kerala too. Realizing this, Kerala is increasing cess on fuel. It is estimated that even if the price is reduced through this, the state revenue will not decrease. Petrol pumps in Mahi will suffer when fuel prices rise. There will be more traffic in other state petrol pumps on the border. There will also be a situation where no one traveling inter-state will get petrol and diesel from Kerala. All this can lead to loss of income.
A social security cess of Rs 2 per liter was imposed on petrol and diesel in the state. It is expected that through this, an additional Rs 750 crore will be received for the Social Security Seed Fund. Social security cess was also imposed on alcohol. A social security cess of Rs 20 per bottle is levied on Indian-made foreign liquor priced between Rs 500 and Rs 999 and Rs 40 per bottle on liquor priced above Rs 1,000. It is expected to get an additional Rs 400 crore through this.
There were reports that there is a possibility of change in the price of petrol and diesel in the country. It is reported that the prices of petrol and diesel are likely to decrease in the context of the central government’s decision. Union Petroleum and Natural Gas Minister Hardeep Singh Puri had a meeting with Oil Marketing (OMC) companies on Sunday. Hardeep Singh Puri asked the oil marketing companies to reduce the retail price of petrol and diesel if the price of crude oil falls in the international market. He said once international prices stabilize and the under-recovery is recovered, oil companies should cut prices.
Although oil marketing companies are free to revise product prices, political considerations also play a role in price revisions in practice. Meanwhile, Hardeep Singh Puri claimed that despite the volatile prices of the Indian crude basket, petrol and diesel prices are under control. Hardeep Singh Puri also said that the central government has reduced taxes twice and given relief to the people. The fact is that Kerala has not reduced even this time. Between November 2021 and May 2022, the central government revised the tax twice.
But petrol and diesel prices have not been revised from May 22, 2022. While the finance ministry has cut central excise duty, many states have reduced sales tax. But non-BJP states were not ready for this. Hardeep Singh Puri also said that there is a difference of up to 10 rupees in these places. The protest against Kerala was also strong. Meanwhile, petrol prices are increasing again in Kerala. Brent crude prices fell to $88 a barrel from $139 in March.
But on the other hand, India increased its imports from Russia. This has affected overall fuel imports. So the reason oil marketing companies are unable to lower prices is because that loss is still there.
