Kerala govt demands Centre to rollback price hike

CPI-M led LDF government in Kerala today demanded that the Centre  roll back the hike in prices of petrol and diesel and alleged that it was a move to deregulate the prices of petroleum products in the country.   

Addressing a press conference here, State Finance Minister T M Thomas Issac said there was absolutely no justification for price hike and said the move was part of a 'conspiracy' to deregulate the Oil industry in the country.   

Issac said International Energy Agency in the Oil Impact Report published in June had stated that the re-election in May of a 'Congress-party majority' could herald significant changes to India's administered price regime.   

'The new government will not be encumbered by its former Communist allies, as such the government may now be finally able to push for deregulation', the report had stated, he said.    

Issac said the state government could not concede the Opposition demand to waive tax on petroleum products on the increased price. Price hike was virtually an imposition of tax on common people before the budget, he said.

Centre was extending huge tax concessions to Corporates in the country while increasing the price of petroleum products causing hardship to the common man,he said.