This Article is From Jun 25, 2011

Political storm over fuel hike, Opposition demands rollback

New Delhi: A day after the government announced a fuel price hike, the BJP and Left parties held nationwide protests today, and called for an immediate rollback.

In New Delhi, BJP activists marched towards Parliament but were prevented by police who had to use water cannons to disperse the protesters. (Watch: India fumes over 'minimal fuel hike')

Chanting slogans against Prime Minister Manmohan Singh, UPA president Sonia Gandhi and Delhi Chief Minister Sheila Dikshit, they alleged price rise have broken the back of the common man.

"This is the tenth hike of petroleum products by this government... The victims are housewives, farmers and poorest of the poor," said Leader of the Opposition in Lok Sabha Sushma Swaraj.

The Left parties said it was "another cruel blow" to the common people as the increase in diesel price would raise transportation cost and affect farmers, while those in kerosene and LPG cylinders would burden the poor.

CPI leader AB Bardhan said, "If you will not control prices the people will take control and throw you out."

With the government approving a fuel price hike last night, diesel prices are now dearer by Rs. 3 a litre, while kerosene prices have gone up by Rs. 2 per litre. LPG prices have been hiked by a whopping Rs. 50 per cylinder.

But it is not just the Opposition, key ally of the government, West Bengal Chief Minister Mamata Banerjee, is also unhappy with the hike.

"We don't support the time and again increase in LPG prices. We have expressed our opinion and lodged our protest," Mamata said.

She also wasted no time in coming to the rescue of the people of West Bengal. Mamata cut the state cess on LPG. So, the gas price in Kolkata will now be cheaper by Rs. 16. It was Rs. 417.10, after the hike but it will now be Rs. 401.10. (Read: Mamata cuts state cess on LPG)

However, not all states are willing to cut state cess on LPG. "It is going to be a tremendous burden on the poor, the middle class and especially the very poor," said Orissa's Chief Minister Naveen Patnaik.

"The government cannot control inflation, the government is not even trying to do so. Despite assurances inflation is on the rise," said Samajwadi Party leader Akhilesh Yadav.

The government that's already battling inflation, says it had little choice at a time oil companies are making huge losses. The new prices are aimed at helping state-owned oil firms. Because prices of fuel are below market rates, they currently lose Rs. 15 per litre on diesel, Rs. 27 per litre on kerosene and Rs. 381 on the sale of the average domestic-use gas cylinder. Oil Marketing Companies (OMCs) will now be able to reduce their under recoveries - which stood at Rs. 1,71,140 crores - by Rs. 21,000 crore.

(With PTI Inputs)
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