Left threatens protest against oil price hike

Prime Minister Manmohan Singh seems to have got only partial success in his efforts to secure the endorsement of the Left parties for a petroleum and diesel price hike, as the Left parties announced today that the government had not acted on their directions on the issue and therefore they were launching a countrywide protest against the hike.

In what was seen as an attempt to persuade the Left parties into agreeing to an oil price hike - which the government for some time has been saying is inevitable - Prime Minister Manmohan Singh met Left leaders last evening and nudged CPI leader AB Bardhan into virtually admitting after the meeting, that the government had been forced to raise prices. Thus, it was made to look like the Left had reluctantly but willingly endorsed the move.

The Left today tried to cover up its track by announcing vigorous protests against the move. "This move could have been avoided if the government had listened to alternate suggestions given by the Left parties. It is a small mercy that LPG and kerosene, which are the fuel of the poorer and middle classes, have been spared," the CPI said in a release.

The party warned that the increase in diesel prices will have a cascading effect on prices all round.

The CPI-M said there was no justification for the hike. Noting that the government had increased prices just three months ago, the CPI-M said the move would have a cascading effect.

The CPI-M said it had suggested various methods to the government to avoid the rise in prices. These included customs and excise duty rationalisation, withdrawal of the road cess and the sales tax concessions to private refineries.

Saying that the government could have suspended duty free benefits for exports instead of raising prices, the CPI-M demanded an immediate review of the taxation policy on petroleum products. It also asked its cadres to protest against the move.

The BJP condemned the 'fifth increase' of oil prices. "When there is a rise in international prices of petroleum products, we expect the government to reduce its share of profit and revenue earnings. Paradoxically, a government which got elected on the slogan of common man (aam aadmi) has put a substantial part of the burden on the common man," party general secretary and spokesman Arun Jaitley told reporters here.

Jaitley added the party would announce a countrywide programme against the hike in a day or two.