Facing the pressure from opposition and UPA allies over the increase in diesel price, and FDI, Congress has played another card by increasing the number of subsidized LPG cylinders in a year from 6 to 9 in congress ruled states.
The decision comes after most political parties announced that 6 LPG cylinders per year are too low as common household consumption is more. Congress has directed the states where it has ruling to offer 3 additional cylinders at subsidy to consumers.
Mamata Banerjee has decided to withdraw support from UPA and their ministers will offer resignation on Friday. The Congress party leaders held meeting in New Delhi to discuss next course of action. The decision of Mamata Banerjee to quit the UPA government comes as her demands for rollback were not heard by Congress leadership.
Congress wants to push ahead with the reforms but its allies are not allowing it to move forward. Congress is also portraying itself as a victim to win public support, but with rising expenses, common man can not support the decisions of the government. Congress should have thought of other reforms, which could have allowed the government to reduce deficit rather than increasing diesel prices by Rs 5, which will surely impact budget of most of the people in the country.
Office for National Statistics (ONS) has revealed figures highlighting that in the past ten year, there have been fall in the revenue of the Government coming from petrol sales. According to the figures, the shares of government in the sales as fallen to 62% which was at 81%, ten years back.
The ONS has reported that the government has witnessed a fall in its hares as it didn’t hike the petrol prices in accordance with hikes in petrol duty. No matter what reasons are being cited by the ONS for fall in the shears of the government, there is no doubt that the prices of petrol has touch the sky, this years.
The fuel costs about 75p per liter, while the cost of fuel duty and VAT stands for 57.95p and 57.95p respectively. It is believed that if the VAT is removed then the prices of fuel could fall to 53p.
It has come to light that a large number of the UK families are spending £677 on fuel or petrol duty in 2009-2010. However, ten years back, the residents were paying just £365 for petrol duty. According to the statistics, lower income group families are spending more than their income.
About 20% of the lower income group households pay 3.5% of their disposable income of petrol duty while 20% of rich are paying just 1.8% of their income. It means that the hike in petrol duty is directly impacting the lower income groups.
Chancellor George Osborne has received appeals from many organizations in regard of bringing change in the fuel duty system. As the fuel duty is surging dramatically, there is high possibly of poor motorist of losing mobility. However, it has been reported that the government is planning to raise petrol duty from next year’s budget.