Kharge accuses Modi govt of squeezing share of states on petrol, diesel cess

New Delhi: Congress president Mallikarjun Kharge slammed the Modi government on Tuesday for imposing a cess on petrol and diesel despite falling global crude oil prices, claiming that despite collecting Rs 38.89 lakh crore since 2014, it has "squeezed" the rightful share of states by failing to share this with them.

"The Modi government's 'Cooperative federalism' = CESSation of federalism," Kharge said in a post on X.

He alleged that despite international crude oil prices falling to a 47-month low, the Modi government raised the central excise duty on petrol and diesel by Rs 2 each.

This year, the Modi government shall earn Rs 1.47 lakh crore from the total cess on petrol and diesel, and a whopping Rs 28,000 crore from this Rs 2 central excise duty alone, he claimed.

But states, including the BJP-ruled ones, he said, would not get a single paisa from this cess, even though the states have been constantly demanding a higher share of the divisible pool from the Union government.

"Since 2014 to December 2024, the Modi government has collected Rs 38.89 lakh crore by taxing petrol, diesel and petroleum products.

"Instead of following the model of 'Team India' propagated by PM Modi, the Union government has passed on the burden of Rs 1 lakh crore revenue forgone in giving a tax rebate to personal income tax up to Rs 12 lakh slab announced in the Budget 2025-26," the Congress chief said.

He further claimed that Rs 5.7 lakh crore collected through various cesses and surcharges since 2019-20, will remain unspent by the Modi government (till March 2026).

"This could have easily passed on to the states, but the Modi government is busy squeezing the rightful share of the states," Kharge alleged in his post.

With PTI inputs