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Mainstream, VOL L, No 23, May 26, 2012

Allround Anger at Steepest Petrol Price Hike

Editorial

Monday 28 May 2012, by SC

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A day after the ruling UPA Government at the Centre marked the third anniversary of its second stint under the Prime Ministership of Dr Manmohan Singh and barely 24 hours following the end of Parliament’s Budget session, the middle class has been dealt a severe blow by the steepest-ever increase in the price of petrol at one go.

The government representatives are claiming that this was done by the oil marketing companies (OMCs) since the petrol price was decontrolled two years ago in June 2010. But the fact remains that the hike was effected only after the UPA Government allowed the OMCs to do so.

Ex-refinery price of petrol has been raised by a huge Rs 6.28 per litre, the highest so far. After adding excise duty and State levies, petrol now costs Rs 73.18 a litre in Delhi, Rs 77.53 a litre in Chennai, Rs 77.88 a litre in Kolkata and Rs 78.57 a litre in Mumbai (around 10 per cent hike per litre).

This petrol price hike has fuelled anger and resentment across the board. Petroleum Minister S. Jaipal Reddy had on May 22 disclosed to the media that fuel price rise had become “very essential” since the OMCs had incurred losses amounting to Rs 72,000 crores with the sharp decline in the value of the rupee (which has hit a new low of Rs 56 to a dollar), but before such a step “we have to talk to the political parties”, an exercise which was not eventually undertaken (so keen the Manmohan Singh dispensation was to “bite the bullet”!) The consequence is there for all to see—not just the Opposition parties (from the BJP to the Left whose activists have already hit the streets to register their protest) but the Congress’ allies in the UPA, notably the Trinamul Congress, have also raised their voice of criticism in no uncertain terms. TMC supremo and West Bengal CM Mamata Banerjee questioned the timing of the petrol price increase adding: “The government could have given a hint during the Parliament session.” She clarified that the TMC will not pull out of the UPA to topple the government as that would aggravate both political and economic instability but asserted in the same vein: “...that does not mean we won’t raise our voice.” Likewise DMK chief M.

Karunanidhi instructed his party MPs to ask the Centre for an immediate roll-back, a demand he shared with his bete noire J. Jayalalithaa, the AIADMK supremo and Tamil Nadu CM, who also underlined that the “hike could have been avoided by reducing the profit of the government and private oil companies”. And even the Congress’ new-found ally, Mulayam Singh Yadav of the SP (whom the UPA leaders had given pride of place at the function held to mark the ruling coalition’s third anniversary since its return to power in 2009), didn’t conceal his biting sarcasm when he tongue-in-cheek characterised the hike as the Union Government’s “gift to the people”.

The Congress spokespersons themselves have, for once, been somewhat tongue-tied by this development and as we go to press there is talk of at least a partial roll-back of the petrol price increase. And hopefully the widespread negative public reaction to the Congress’ ill-conceived move to test the middle class’ patience (when the public is already under considerable stress due to the incessant price rise and sharp decline of the rupee, and further exasperated by the unending series of scams) would help desist the government from resorting to similar measures with regard to diesel and LPG as some economic pundits—totally divorced from the country’s ground reality and sufferings of the common people or aam aadmi—had earlier suggested.

May 24 S.C

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