Commercial LPG price hike 'direct blow' to common man: CM Siddaramaiah
Bengaluru (PTI): Karnataka Chief Minister Siddaramaiah on Thursday launched a sharp attack on the union government over the recent hike in commercial LPG cylinder prices, calling it a "direct blow" to the common man and warning that rising fuel and tax burdens were quietly fuelling inflation and hurting livelihoods.
In a post on social media platform X, the Chief Minister said the increase would severely impact tea shops, darshinis (Quick service restaurants), small hotels, bakeries and street vendors, who depend heavily on commercial LPG, and accused the Centre of pursuing selective economic logic while burdening citizens.
"The recent hike in commercial LPG cylinder prices by about Rs 111 is a direct blow to the common man. Tea shops, small hotels, bakeries and street vendors depend on commercial LPG. When its price rises, food becomes costlier, livelihoods suffer and inflation quietly enters every household," Siddaramaiah said.
Responding to the Union government's explanation that the LPG price rise was due to an increase in Saudi Contract Prices (CP), the Chief Minister questioned the inconsistency in fuel pricing.
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"The Union Government now argues that LPG prices have increased due to the rise in Saudi Contract Prices (CP). If that is the logic, an important question must be answered honestly by Narendra Modi on why have petrol and diesel prices not been reduced when global crude oil prices have been consistently falling?" he asked.
Siddaramaiah pointed out that while Saudi CP may fluctuate, global crude oil prices, the primary input for petrol and diesel, have softened. "Yet petrol and diesel prices remain unchanged, burdening citizens while generating record revenues. This selective application of 'international price logic' raises serious concerns," he said.
The CM also flagged what he described as fiscal injustice towards states, alleging that Karnataka contributes far more to the national exchequer than it receives in return.
"Karnataka contributes 4.5 to 5 lakh crore every year to the national exchequer, but receives barely Rs 60,000 crore in return, often delayed. This is not cooperative federalism, it is fiscal imbalance," he claimed.
He further criticised the Centre over rising railway fares, additional cesses and surcharges outside the GST framework, and what he termed as the shifting of welfare responsibilities to states.
Referring to the VB-G RAM G Act, Siddaramaiah said states were now being forced to bear nearly 40 per cent of the cost, increasing their financial burden.
"India cannot be built by squeezing its workers, taxing its poor, and weakening its States. Economic governance must be rooted in fairness, transparency and compassion, not selective justifications," he said, adding "a strong nation respects its people, empowers its States, and ensures growth is shared fairly."
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Rajnath Singh chairs IGoM meet, urges constant vigil over West Asia crisis
New Delhi (PTI): Defence Minister Rajnath Singh on Thursday emphasised the need for round-the-clock monitoring of the West Asia conflict and called for a calibrated response to deal with any eventuality to ensure that national interests remain protected.
Singh made the comments while chairing a high-level meeting of the Informal Group of Ministers (IGoM) set-up to monitor the situation in West Asia.
The meeting was attended by External Affairs Minister S Jaishankar, Finance Minister Nirmala Sitharaman, Oil Minister Hardeep Singh Puri, Power Minister Manohar Lal, Chemicals and Fertilizers Minister J P Nadda, Consumer Affairs Minister Prahlad Joshi and Minister of Railways, Information and Broadcasting, Electronics and Information Technology Ashwini Vaishnaw.
In view of the "uncertain situation", the defence minister underlined the importance of round-the-clock monitoring of the situation and the need to respond in a calibrated manner to deal with any eventuality, an official readout said.
He stressed on the need to leave no stone unturned to ensure that the people of the country face the minimum effect of the conflict, it said.
It was the second meeting of the IGoM after it was set up last month.
The IGoM was apprised of the measures being taken by the government in the wake of the ongoing West Asia conflict, Singh said on social media.
"We also deliberated upon the next steps to be taken by the government to mitigate any adverse impact arising due to the ongoing conflict," he said.
The defence ministry said in the readout said, "In the meeting, the seven empowered groups of secretaries briefed the IGoM on the steps being taken to tackle the situation."
"The IGoM was apprised about measures undertaken by the Ministry of Finance to address concerns arising due to global trade disruptions and provide relief and support to the industry, especially manufacturing, and bolster investor confidence," it said.
It listed measures including notification issued on Wednesday on full customs duty exemption on 40 critical petrochemical products till June 30.
The ministry also mentioned announcement of a special one-time relief measure for eligible units in SEZs to sell manufactured goods in Domestic Tariff Area (DTA) at concessional customs duty rates to be effective from April 1 to March 31.
It also noted another notification issued by the Department of Revenue clarifying that the provisions of GAAR (General Anti Avoidance Rules) will not be invoked in respect of investments made prior to April 1, 2017.
"These measures will reduce cost pressures on downstream sectors including textiles, packaging and pharmaceuticals, facilitate supply stability in the country and provide requisite clarity for investors contemplating investments in India," the readout said.
Defence Minister Singh appreciated the government's decision to impose a 25 per cent cap on the monthly increase in aviation turbine fuel prices for domestic operations, with effect from April 1.
This step will help protect the people from sudden increase in fares, he said.
The government has accorded highest priority to domestic LPG supply, with refinery production enhanced to fully meet consumption requirements, according to the readout.
"The IGoM was informed that there have been no reports of dry-out at LPG distributorships, and delivery of domestic LPG (liquefied petroleum gas) cylinders continues as per the normal schedule. The temporary supply concerns arose due to instances of hoarding and black marketing, which triggered panic buying in certain areas," it said.
The ministers were informed that strict enforcement action is being undertaken, with raids being carried out across multiple states and Union territories to curb hoarding and black marketing of LPG, the ministry said in the readout.
Action has also been taken against some LPG distributors who engaged in malpractices, it said.
"To support migrant labour and low-consumption households, the government is ensuring adequate availability of 5 kg free trade LPG cylinders, and since March 23, over 4.3 lakh such cylinders have been sold. Special focus is being given to states where demand is higher," it said.
The IGoM was apprised that industrial requirements dependent on commercial LPG are being met, with over 80 per cent of pre-crisis supply levels being maintained to ensure continuity of operations.
"Special meetings have been held with ministries and stakeholders of different industries to understand their demand and meet their needs. Oil PSUs are ensuring continued supply of Auto LPG across the country," the readout noted.
"However, some supply constraints are being faced by private operators due to their procurement challenges, which is why lines are being observed at PSU auto LPG pumps. Wherever the autos are dual feed and can use petrol, they are being encouraged to use petrol," it said.
