Jaya urges Centre to withdraw oil pricing power given to OMCs

The statement comes two days before Jayalaithaa is scheduled to meet Modi on June 3 in New Delhi

Tamil Nadu Chief Minister J Jayalalithaa today said that the people's hope of a further progress by change of government at the Centre has been dashed with the fifty paise hike in diesel prices.

In a statement today, she once again urged the new government to change the oil pricing formula instead of following the wrong economic policies of the erstwhile Congressled government and asked the centre to withdraw the hike, which will have inflationary effect.
 
"It is painful to note the hike in diesel prices by the central government-owned oil marketing companies," said Jayalalithaa. The oil pricing mechanism should be changed and must factor in the cost of crude (imported and domestically explored) and their refining costs, she suggested.
 

She said if this method is followed the prices of petroleum products would come down and inflation would be contained.

The statement comes two days before Jayalaithaa is scheduled to meet Narendra Modi on June 3 in New Delhi.

It may be noted during her Lok Sabha campaign, Jayalalithaa said she will stress the Centre to withdraw the power give to Oil Marketing Companies (OMCs) to fix the fuel price.