Uttarakhand proposes diesel price relief ahead of bypolls

Under attack from the Opposition over the hike in the prices of diesel before the Tehri Parliamentary bypoll, the Congress government in Uttarakhand is contemplating a move to provide relief to the people, albeit a miniscule one.

Chief Minister Vijay Bahuguna, who on Sunday launched his son Saket from the Tehri seat, where the bypoll will be held on October 10, would shortly send a proposal to the Election Commission to seek its permission to provide relief on value-added tax (VAT) after the Rs 5 hike by the state-owned oil marketing companies on diesel prices last week.

"We have proposed a relief of around 50 paise in the total hike of Rs 6 after VAT," said a top government official.

Under the election code of conduct, the government can undertake any new measure only after getting the Election Commission’s permission.

The government levies a 20 per cent VAT on the sale of diesel in the state. After the hike of Rs 5 by the oil marketing companies, the actual hike comes to around Rs 6 in the state after VAT.

Even the 50 paise relief in diesel would put a burden of Rs 10 crore on the state exchequer, said a finance department official.

Interestingly, most of the Opposition parties, including the Bharatiya Janata Party (BJP) had been resorting to protest demonstrations burning effigies of the Central government ever since the prices of diesel were increased.

"We will not tolerate any hike in the prices of diesel or petrol. The government must bring down the prices or face the wrath of the people," said senior BJP leader and former Chief Minister B C Khanduri.