 "Opposition slams gas policy, freeing of diesel rates")
The Communist Party of India (CPI) said the move would have a cascading effect on the overall inflation as the immediate reduction in prices due to a fall in global crude price levels may not remain for long.
Both the CPI and Aam Aadmi Party (AAP) criticised the government's decision to increase gas prices. They claimed that the government has left enough room for further hikes in gas prices by deciding to review the rates every six months. The AAP also asked the government to be stricter on Reliance Industries Limited (RIL) "deliberately" under-producing gas, which it said was "a fraud on the nation". The AAP reiterated its demand that the government should cancel the RIL contract and impose an exemplary penalty on it, in place of allowing it an escape route.
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"In the long term, the deregulation of diesel prices would do more harm than good as the government will have no role in regulating the prices. This will adversely affect the common people," CPI National Secretary D Raja said.
The government has also not reduced the charges of public transport like bus and rail fare which were raised because of the hike in diesel prices, he said, asserting that the decline in diesel prices by over Rs 3 was "only a temporary phenomenon".
BJP lauds govt
The BJP welcomed the government's decision and said it is the beginning of economic reforms which would bring relief to the common man.
"It is the beginning of economic reforms that will help bring relief to the common man's life through reduced prices," BJP national secretary Shrikant Sharma said.
Regarding the fixing of natural gas prices, the CPI leader said the government had increased it to $ 5.61 per mmBtu and not to $ 8.4 as recommended by panels set up by the previous UPA government. But by deciding to revise the prices every six months, the government has found "a camouflaged way of helping the private corporate house," Raja said.
The AAP termed the increase in gas prices as unjustified, and said it will have an effect on the prices in multiple sectors. "The Narendra Modi-led government, for now, appears not to have endorsed the decision of the previous UPA government to double the gas prices from $ 4.2 to $ 8.4, but a closer look shows that it could be the first in a series of hikes coming soon," the AAP said in a statement. This government's decision to revise the prices every six months leaves enough room for further hikes in quick succession, it said.
The AAP noted that Finance Minister Arun Jaitley's announcement that the revised higher price will not be applicable to the KG D6 gas basin, where the Reliance Industries Limited is the contractor, till the outcome of the arbitration proceedings. "Though the BJP government is showing that it is taking tough steps, but the Aam Aadmi Party is of the view that the central government should no longer treat the RIL's delaying tactics with kid gloves," AAP said, asking the government to have "dealt with the erring corporate giant in a strict manner".
"The RIL's violations in its contract with the government for production of gas from the KG D6 basin are extremely serious and it will be a blunder to overlook them," AAP said. It said RIL, having "delayed its target repeatedly and deliberately under-producing gas is a fraud on the nation and the AAP reiterates its demand that the government should cancel the RIL contract".