Left to demand cut in LPG, diesel prices

When the Left parties meet the government on Thursday for their co-ordination meeting, they will be looking for a revision in the prices of diesel and liquefied petroleum gas (LPG), if not a complete roll-back of the fuel price hike.

Though the Left is officially not entertaining suggestions of a "partial rollback", senior Left leaders admitted that their efforts would be directed at granting the common man a reprieve from the "cascading effect of the diesel price hike and unaffordable LPG prices."

At a meeting with Finance Minister P Chidambaram yesterday, CPI leader D Raja conveyed the Left's point of view to him. The Left has been arguing with the government to cut Customs duty on petroleum products by 5 per cent and to bring down the excise duty to zero.

This stand of the Left parties has been underlined by the argument that oil companies, which are raking in cash, can be allowed to bear the cost of the international fuel price hike, instead of taxing the common man.

That the "common man" argument is driving the Left imperative on diesel and LPG revision is clear from their unenthusiastic response to a possible petrol price revision. Though welcome, it is not in the "aam aadmi" territory.

While there have been whispers today of a possible petrol price revision as per the usual fortnightly revision on November 15, the Left is unlikely to be content with a cut in petrol prices merely.

Even if the government is expecting to surprise the Left with cancelling the Rs 5 LPG hike, (possibly as part of the plan show how the Left's point of view actually affects its daily functioning) without relenting on diesel price, the government is unlikely to patch up with the Left on the fuel hike.

Left trade unions, for their part, have been talking of curbing the cascading effect of the diesel hike by allowing railways to access diesel at pre-hike rates.

They have also suggested a "dual price" mechanism whereby two-wheeler owners will be paying less for petrol than four-wheeler owners. The "differential price mechanism," according to the trade unions, can be pot into place by following a system of using rebate coupons.

The trade unions might have their "creative" points of view, as one senior Left leader put it, however it will take a little imagination and lot of hard talking on the government's part to stand its ground, now that other elements within the Government, such as the DMK have joined the Left on attacking the hike.