The Centre will distribute 41 per cent of ₹12.40 per litre among States for unbranded petrol and of ₹9.80 a litre for diesel. Since the Centre has cut cess, this means no change in revenue-share implications with the States.

The Centre had lowered road and infra cess to ₹13 from ₹18 on petrol and to ₹8 from ₹18 on diesel. “If the Centre reduces the additional excise, customs duties and other cess on petrol and diesel, the prices will automatically come down,” he said. Kerala Finance Minister KN Balagopal blithely said the Centre had no right to impose such a high additional excise duty on petrol and diesel to begin with. It is not fair to ask us to reduce it,” said Bhagel. Since the Congress assumed power in this State, we have not increased even one rupee in taxes. “You increase petrol/diesel to ₹30 and then decrease it by ₹5, how does it help? If you actually want to help people, bring the excise duty down to the 2014 levels.

In a written response from Raipur, the Chhattisgarh CM told BusinessLine that if the Centre wants to actually make a difference, the “small tweaks” will not help. While the Centre showcased the reduction in fuel prices as a result of the excise cut in most BJP-ruled States, the most aggressive counter came from the Chhattisgarh Chief Minister Bhupesh Bhagel.

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