Did not say fuel price rise good for states, says BJP spokesperson Nalin Kohli

While fuel prices continue to rise in the country, BJP spokesperson Nalin Kohli said Tuesday that states could benefit from the rise in prices.

Kohli added that the reasonfor the rise in petroleum prices was well known andclaimed that external factors were responsible.

He further said that therise in petroleum prices was a good opportunity for state governments which could benefit from charging several taxes.

"Reasons for hike in petroleum prices well known. There is not only fact of strengthening of dollar and weakening of rupee, external factors too. This is good opportunity that when prices go up states charge VAT, Sales Tax and their ad valorum, in effect when prices goes up states benefit," Kohli said.

"What excise comes to the Centre that is 42% as per finance commission, also goes back to states and the rest is used for citizens. If states think about it, this is a good time to bring a discussion about the inclusion of petroleum products in GST," he added.

Kohli issued a clarification later over his statements saying that he never said that the rise in petrol prices was a good news.

He also added, "I said it's good opportunity to start a discussion about including petroleumproducts in GST".

The prices of Petrol and diesel rose further to Rs 79.31 and Rs 71.34 per litre respectively in the national capital on Tuesday.

Fuel pricesalso increased in Mumbai with prices of petrol reaching to Rs 86.72 per litreand that of diesel to Rs 75.74for diesel.

Petrol and diesel prices have escalated by almost a rupee per litre within a fortnight.

Union Petroleum and Natural Gas Minister Dharmendra Pradhan had also blamed the "external factors" for the rise in domestic prices of petrol and diesel on Sunday.

Pradhan said that the factors responsible for the drop in production of crude oil have resulted in the rise of fuel prices in the country.

"I would like to mention two points, and both these subjects are external. OPEC (Organisation of the Petroleum Exporting Countries) had promised that it will raise production by one million barrels per day, which was not raised. Apart from that, crises in countries like Venezuela and Iran are increasing. There is a pressure on oil prices due to a decrease in production. Secondly, global currencies have weakened against the US dollar," he said.

He also said that the increase in the prices was temporary.