Left wants fuel price rise checked

CPI for cut in duty on oil imports

The Left parties today pounced on the issue of escalating fuel prices and demanded the Centre should withdraw the various levies on petroleum products, even as the government indicated that Customs duties on these products might be recalibrated.

In Kolkata, CPI General Secretary AB Bardhan demanded that the Centre withdraw the excise duty on petroleum and reduce the Customs duty on petroleum products instead of increasing fuel prices every time the price of international crude went up.

"We are against increasing the prices of petrol and diesel every time there is a rise in international crude prices. The government should bring down to zero the excise duty and reduce the Customs duty to cushion the price rise," Bardhan said in Kolkata.

With the finance ministry indicating that Customs duty on petroleum products may be recalibrated, the Left parties are playing up the issue so that they can project it as a political victory for them.

Earlier, Finance Minister P Chidambaram had rejected a similar request made by Petroleum Minister Mani Shankar Aiyar.

It has been a long-standing demand of the Left that the government cut duties on petroleum products and let cash-rich oil companies take a hit for price fluctuations.

Bardhan said the coordination committee of the United Progressive Alliance (UPA) would take up the fuel price issue at its next meeting. The cut in Employees' Provident Fund (Fund) rates would also come up for discussion, he added.

"We will submit a note to the Manmohan Singh government showing that it is possible to revert the EPF rate to 9.5 per cent," the CPI leader said. "We are against this unilateral decision to reduce the EPF interest rate to 8.5 per cent," he added.

However, Bardhan dispelled fears that the UPA government was in danger.

"We will continue to protest against the decisions of the government that go against the interests of the people, but we will not hang a Damocles sword on the head of the UPA government," Bardhan said, when asked if the CPI would continue to support the UPA government.

However, the harshest criticism of the government came from the Revolutionary Socialist Party (RSP).

"If the UPA government continues to take anti-people measures in this way, we will have to reconsider our decision to support it. We are not compelled to support the government if it pursued policies against the interests of the people and followed the World Trade Organisation prescription," RSP leader Kshiti Goswami said.

The RSP has three MPs in the Lok Sabha.