New complications and political postures are threatening to again stall a decision by the United Front steering committee on the contentious oil pool deficit issue. The steering committee is scheduled to meet on July 2 to discuss possible alternatives for tackling the burgeoning oil pool deficit, which is increasing by Rs 30 crore every day. However, a decision may not be taken before the beginning of Parliaments monsoon session on July 23.
Three factors pose new hurdles to a decision: To begin with, the Janata Dal is set to conduct its presidential election on July 3. This is expected to cast a shadow on the previous days steering committee meeting. Further, the Congress has already declared its opposition to a price hike, while demanding that the United Front government submit specific proposals to tackle the deficit. And finally, the Left parties have come up with a new objection to a hike being announced on July 2.
The Lefts new objection is that no major announcement should be made outside Parliament once the notification for the commencement of the next session has been issued. The necessary notification for the commencement of the monsoon session is said to have been already circulated to members of Parliament.
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We had criticised the Congress so many times for making major announcements outside Parliament once the notification has been issued. We had criticised the United Front government last year on the same ground for announcing a hike in the prices of petroleum products. How can we be party to a decision on July 2?, a senior Left leader asked.
The four Left parties discussed their new objection at a meeting last week, and are scheduled to meet again on the eve of the steering committee meeting.
The Congress declared its strong opposition to a hike, and said it was awaiting an `alternative specific proposal on the issue from the United Front.
The partys position was conveyed to the Prime Minister on Thursday night during a meeting with Congress president Sitaram Kesri.
Congress spokesman V N Gadgil said the discussion was of a general nature since Gujral did not make any specific proposal.
Unless there is a specific proposal, we cannot respond. We are strongly opposed to any increase and we hope the government will come out with an alternative proposal to deal with the issue, Gadgil said.
Congress sources said the party would make its stand known only after the steering committee arrives at a decision. The Congress objective is to avoid being seen as party to a decision that is bound to be politically unpopular. A senior Congress leader said the party was against a piecemeal approach, and would like a permanent solution through a package of measures.
United Front sources said the government would like to effect a price hike, although the extent of the hike may vary from one product to another. For example, he said there could be a dual price for kerosene, with no increase in the kerosene price for those who live below the poverty line. A marginal increase in petrol prices and a substantial hike in liquefied petroleum gas prices is likely, he said, but added that it all depended on the political climate in the next week.