Chennai: Tamil Nadu Chief Minister J Jayalalithaa on Saturday strongly condemned the Centre for the steep hike in prices of diesel, kerosene and cooking gas and demanded immediate rollback.
In a statement here, she said the Centre, by merely reducing the excise duty on diesel by two per cent and customs duty on crude oil by five per cent, had no moral right to direct the States to reduce the VAT to ease the burden of the people.
Hitting out at the Centre, she said by having direct contacts with the people, it was the state government which had been spending more on welfare measures for the people.
”Since VAT alone contributes a major portion of the state’s revenue, the Centre, by steeply hiking the prices of diesel by Rs 3, kersosen by Rs 2 and cooking gas by Rs 50, had no moral right to direct the States to reduce the VAT”, she charged.
Jayalalithaa said the hike in prices of diesel would severely affect all sections of the people, including the poor.
Since goods were transported by road from one place to another, the hike in the price of diesel would result in manifold increase in freight charges.
”Lower and middle class people are already affected by the rising prices.
This hike in prices of diesel will lead to increase in prices of all essential commodities, besides the prices of vegetables will also increase substantially”, she noted. (PTI)