Cabinet divided on oil price hike

Paswan and Raja left before the meeting ended to protest against the move.

The government's decision to raise petrol and diesel prices at yesterday's Cabinet meeting did not go unprotested by the allies of the United Progressive Alliance (UPA).

Telecommunications Minister and Dravida Munnetra Kazhagam (DMK) MP A Raja and Steel Minister and Lok Janashakti Party (LJP) leader Ram Vilas Paswan left before the meeting ended.

Top sources in government said the two ministers felt the move was not justified and was politically harmful with the general elections due in early 2009.

"Both ministers said since the decision had already been made, there was no point in holding a discussion and left a little before the meeting concluded," said a source.

The DMK has 16 MPs in the Lok Sabha while the LJP has four MPs in the 10-party coalition, which has the outside support of the four Left parties, the Bahujan Samaj Party and the People' Democratic Party.

The decision to raise oil prices has been in abeyance for over six months due to strong opposition from several UPA allies that vote with the government in Parliament. Petroleum Minister Murli Deora has also been opposed to a price rise.

Raja and Paswan's move is not significant in itself, except to suggest that their parties want to maintain a distance from some of the more unpopular decisions of the UPA government ahead of the general elections.

"It was an obvious decision which had to be taken but it is not a popular decision. Both ministers decided that an anti-hike posture had to be taken to register their opposition to the matter even if nothing could be done to reverse the decision," added the source.