Karnataka CM Challenges Central Government Over LPG Price Hike

Karnataka Chief Minister Siddaramaiah criticized the central government for increasing the commercial LPG cylinder prices, highlighting the impact on small businesses and questioning the unchanged diesel and petrol prices despite falling global crude oil costs. He accused the government of selective price logic, causing fiscal imbalance and economic strain.

Karnataka Chief Minister Siddaramaiah launched a scathing criticism against the central government following a significant hike in commercial LPG cylinder prices. The chief minister expressed grave concern over the inflationary pressures this would entail on the livelihoods of countless citizens, especially small business owners.

Siddaramaiah contended the federal government's rationale behind the price increase, specifically questioning the central government's reference to rising Saudi Contract Prices as justification. He asked why, despite declining global crude oil prices, the costs of diesel and petrol have not seen a corresponding reduction.

The oil marketing companies' recent decision raised the cost of a 19 kg commercial LPG cylinder by Rs 111, taking its retail price in Delhi to Rs 1,691.50. This spike, Siddaramaiah warned, would ultimately hit small eateries, tea shops, and vendors hard, subtly driving inflation into every household.

Further, Siddaramaiah accused the government of perpetrating a "selective international price logic," highlighting the incongruity in petrol and diesel pricing in comparison to global trends of crude oil. Citing a fiscal imbalance, he criticized the central government for unfairly burdening citizens while withholding resources owed to states.

The hike, effective from the start of the year, is also applied to 5 kg Free Trade LPG cylinders. However, domestic LPG rates remain unaltered, providing domestic households some respite, as families will not face additional burdens in cooking gas costs.

(With inputs from agencies.)