Commercial LPG price hike 'direct blow' to common man: CM Siddaramaiah

Bengaluru, Jan 1 (PTI) Karnataka Chief Minister Siddaramaiah on Thursday launched a sharp attack on the union government over the recent hike in commercial LPG cylinder prices, calling it a "direct blow" to the common man and warning that rising fuel and tax burdens were quietly fuelling inflation and hurting livelihoods.

In a post on social media platform X, the Chief Minister said the increase would severely impact tea shops, darshinis, small hotels, bakeries and street vendors, who depend heavily on commercial LPG, and accused the Centre of pursuing selective economic logic while burdening citizens.

"The recent hike in commercial LPG cylinder prices by about Rs 111 is a direct blow to the common man. Tea shops, darshinis, small hotels, bakeries and street vendors depend on commercial LPG. When its price rises, food becomes costlier, livelihoods suffer and inflation quietly enters every household," Siddaramaiah said.

Responding to the Union government's explanation that the LPG price rise was due to an increase in Saudi Contract Prices (CP), the Chief Minister questioned the inconsistency in fuel pricing.

"The Union Government now argues that LPG prices have increased due to the rise in Saudi Contract Prices (CP). If that is the logic, an important question must be answered honestly by Narendra Modi on why have petrol and diesel prices not been reduced when global crude oil prices have been consistently falling?" he asked.

Siddaramaiah pointed out that while Saudi CP may fluctuate, global crude oil prices, the primary input for petrol and diesel, have softened. "Yet petrol and diesel prices remain unchanged, burdening citizens while generating record revenues. This selective application of 'international price logic' raises serious concerns," he said.

The CM also flagged what he described as fiscal injustice towards states, alleging that Karnataka contributes far more to the national exchequer than it receives in return.

"Karnataka contributes 4.5 to 5 lakh crore every year to the national exchequer, but receives barely 60,000 crore in return, often delayed. This is not cooperative federalism, it is fiscal imbalance," he claimed.

He further criticised the Centre over rising railway fares, additional cesses and surcharges outside the GST framework, and what he termed as the shifting of welfare responsibilities to states.

Referring to MNREGA, Siddaramaiah said states were now being forced to bear nearly 40 per cent of the cost, increasing their financial burden.

"India cannot be built by squeezing its workers, taxing its poor, and weakening its States. Economic governance must be rooted in fairness, transparency and compassion, not selective justifications," he said, adding "a strong nation respects its people, empowers its States, and ensures growth is shared fairly." PTI GMS ROH