NEW DELHI, 15 January 2008 — Dismissing reports of their having recently agreed to a minor increase in fuel prices, leaders of leftist parties said yesterday that they remain opposed to any hike, even marginal.
Gurudas Dasgupta of Communist Party of India (CPI) contradicted reports of his having agreed to a minor price hike in petroleum products during a meeting with Petroleum Minister Murli Deora. Describing these reports as “false and fabricated,” Dasgupta said: “Neither he called me nor did he meet me. Even if he had done so, we would have never agreed to such a suggestion.”
Emphasizing that there was no justification for even a marginal hike in prices, Dasgupta said: “The government should take care of the international price hike by reducing taxes and curbing consumption of petroleum products in the country particularly by private car owners and airline services. If the petroleum prices are increased, it would further escalate inflation, which is already unbearable for people,” he said.
“There is no question of imposing additional burden on the people until ad valorem surcharges on the petroleum product is removed,” Sitaram Yechury of Communist Party of India- Marxist (CPI-M) said.
He also denied having any recent meeting with Deora and agreeing to any suggestion of increase in prices.
“According to our estimates, the Finance Ministry has collected additional 40,000 crore rupees ($10.2 billion) because of the increase in international prices. This is over and above the budget estimates,” Yechury said. “If this extra earning is returned to the oil companies, there is no need to impose further burden on the people. We oppose any increase in prices,” he said.
Taking the same stand, CPI leader D. Raja said recently in Chennai that left parties would oppose any attempt at increase the prices of petroleum products. They would oppose the government inside and outside the Parliament, if it hiked prices of petroleum products, Raja said.
“Any increase in diesel prices would have cascading effect on the prices of essential commodities,” Raja warned and added: “The government should explore various means to lower the loss incurred by oil companies instead of placing the burden on the common man.”
Deora has not allowed oil firms to raise motor fuel prices even though India’s crude cost climbed to over $90 per barrel in 2007, from an average of $65-70 around June 2006 when prices were last raised. But since Jan. 3, when crude touched $100 a barrel on the New York Mercantile Exchange, prices have refused to fall below the $90 mark.
The government will take a decision on the price on Thursday. When questioned yesterday on a possible fuel price hike, Deora said: “On Jan. 17, the Group of Ministers is meeting under the chairmanship of Pranab Mukherjee (External Affairs Minister) in Delhi and that time it will be decided what will happen to the prices.”
