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Govt may partly take back its 3rd Anniversary gift of petrol price hike

24 May 2012 Evaluate

Following countrywide agitation by the frustrated citizens and the leaders of allies who belong to UPA-2 and opposition, the government is likely to partially rollback the steep hike in the petrol prices, as reported by few media agencies. It is being said that Congress is looking forward for a rollback in the range of Rs 3- 5 and however the final decision is at Petroleum Minister Jaipal Reddy’s discretion. 

In an attempt to bring some relief to the fuming citizens, government has requested states to reduce the taxes levied on petrol. However, so far only Kerala and Uttarakhand state government has announced cut in the levies. The South Indian state will be easing the sales tax on petrol by Rs 1.63/litre while the Uttarakhand government has decided a 25% VAT cut on petrol.

The hike in the petrol prices comes merely a day after Parliament winded up its Budget-2 session and two days after UPA-II government’s 3rd anniversary celebrations and presentation of its achievements to the nation. Although, the party high command - Sonia Gandhi has placed the Congress and its allies on election mode, but with this state of economy, the survival and winning 2014 elections of UPA-2 coalition has become difficult.

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