New Delhi [India], March 27 : Congress MP Manickam Tagore on Friday launched a sharp attack on the Centre over its decision to slash excise duty on petrol and diesel, accusing Prime Minister Narendra Modi of "looting" the common public and giving it to big corporates.
Reacting to the move, Tagore alleged that the government had imposed excessive excise duties over time and was now attempting to project a rollback as relief amid West Asia tensions.
"This government has looted the ordinary people with ten rupees per litre, three rupees... these kinds of charges which they had put on excise and looted each Indian. And now, because of the rising oil prices across the globe, they are coming out saying they want to reduce it. Because the oil prices in the market will rise, to stabilise that, they are making these kinds of announcements," he told ANI.
Tagore also accused the Centre under PM Modi of favouring large corporations at the expense of the common man.
"This shows that the Government of India under Mr Modi has been looting the common public and giving their free schemes to the big corporates," he alleged, adding that such a trend "should never happen."
Echoing similar concerns, Congress MP KC Venugopal questioned the actual benefit of the decision for citizens. "I don't know what benefit the people of India are going to get from these decisions," he said.
Another Congress leader, Ujjwal Raman Singh, demanded greater transparency from the government regarding excise collections over the years. He called on the Centre to present detailed accounts of revenue earned through fuel taxes and outline concrete steps to reduce dependence on imports. Singh also criticised the lack of new refinery capacity, pointing to delays in projects such as the proposed Prayagraj refinery.
"The public is demanding an accounting of your excise revenue over the past years. How much money did you earn from this revenue? Details should be presented to the public, and the public should be informed. To address this crisis, tell us where the government installed refineries...How can we reduce our dependence on LPG? What thought, contemplation, and action plan has the government developed on this issue in recent years? There is no plan, no refining capacity, no new refinery. The foundation stone for the Prayagraj refinery has been laid, but it has not yet been implemented. This is the state and direction of the government. What should I expect? I would like to tell the public to keep watching the upcoming assembly elections and work towards rejecting the Bharatiya Janata Party," he said.
On the other hand, Uttar Pradesh Finance Minister Suresh Kumar Khanna described the decision as a "welcome step," praising Prime Minister Narendra Modi for setting an example by reducing excise duty amid global uncertainty.
"This is a welcome step... In such a situation, the Prime Minister has set an example before the country by reducing the excise duty," he said.
Similarly, Bihar BJP President Sanjay Saraogi said the move reflects the Prime Minister's concern for the country's population during "extraordinary circumstances," including ongoing global conflicts impacting oil markets. He highlighted that the Special Additional Excise Duty on petrol has been reduced significantly, while it has been brought down to zero for diesel.
"The extent of PM Modi's concern for the 140 crore people of this nation is clearly reflected in this move. We are currently facing extraordinary circumstances, a war is underway, yet despite this, the Prime Minister has taken such a monumental decision. A significant reduction has been implemented in the Special Excise Duty on diesel; specifically, this levy on petrol has been slashed from Rs 13 to Rs 3 per litre, while on diesel, it has been reduced from Rs 10 per litre to zero. This is a momentous development, and we commend PM Modi for it," he said.
Furthermore, adding to the defence, BJP MP Sudhanshu Trivedi said the decision reflects the government's sensitivity toward citizens during a global crisis.
"There is a very worrying situation prevailing all over the world...but under the leadership of PM Modi, our government has taken this decision with utmost caution, vigilance and sensitivity so that the common people are not burdened by it. Therefore, two important decisions have been taken - higher taxes have been imposed on the export of petroleum products and excise duty has been reduced...This decision shows how sensitive our government is towards the people," he said.
The reactions come after the Central government reduced excise duty on petrol to ₹3 per litre and brought it down to zero for diesel, as per a Gazette notification issued under the provisions of the Central Excise Act, 1944. Additionally, a windfall tax of ₹21.5 per litre has been imposed on diesel exports.
The decision follows escalating tensions in West Asia, particularly the ongoing conflict involving the United States, Israel, and Iran, which has led to a blockade of the Strait of Hormuz--a crucial route that handles nearly one-fifth of the world's crude oil supply. Before the crisis, India sourced around 12-15% of its oil imports through this route.
While the duty cut is expected to ease pressure on oil marketing companies facing losses due to surging crude prices, retail prices of petrol and diesel have remained unchanged so far.