Left parties and BJP oppose hike in natural gas price

The Bharatiya Janata Party (BJP) and Left parties, have both hit out against the government's decision to double the price of natural gas from $4.2 to $8 per million metric british thermal units (mmbtu).

The Communist Party of India (Marxist) Politburo has, in a scathing attack on the United Progressive Alliance (UPA), stated this move would lead to increasing the subsidy burden of the government due to the consequent hike in fertiliser prices and it was targeted at solely benefiting a single corporate house - Reliance. The BJP too has lambasted the move stating it would adversely impact the common man as prices of diesel, petrol, fertilisers, edible oil and power would go up.

"It is estimated every dollar increase in gas price would increase Reliance's profits by at least 74 million dollars," said the CPI (M) in a statement on Friday. The party added Reliance was "virtually blackmailing" the country by keeping production of natural gas in the KG-D6 gas basin below the stated target till the prices were increased.

The CPI (M) stated for the government, this would translate into additional subsidy burden. "The additional subsidy the government would have to bear at present prices of fertiliser and gas-based power is estimated to be to the extent of Rs 71,250 crore for a five-year period."

Speaking to Business Standard , Communist Party of India leader Gurudas Dasgupta described Thursday night's Cabinet approval to the hike in gas price as "Disastrous. It will have tremendous impact on the economy, which is reeling under the impact of slowdown and inflation." Accusing the UPA of being totally "unconcerned about its impact", Dasgupta added, "It only shows how concerned the government is towards the ambitious profit-making corporate house. We shall continue our fight relentlessly."

Dasgupta had flagged off the issue earlier, accusing the government of favouring Reliance Industries, which he alleged, would make windfall gains. To which, petroleum minister Veerappa Moily shot back accusing Dasgupta publicly of being "part of the import lobby."

BJP spokesperson Prakash Javadekar on Friday said, "The twin factors of the depreciating rupee and the government's decision to double the natural gas prices will hit the common man the most. The common man, already reeling under ever-rising prices, was expecting some relief from the government. Instead of offering such a relief, the government has once again targeted him with a big dose of price rise."

Doubling the price of the natural gas would trigger further rise in the prices of fertilisers, power and cooking gas and would impact the general price line going northward, Javadekar said. The BJP has demanded the government must spell out what the price of cooking gas cylinder and fertilisers along with power would be from April 2014.