The decision to give oil companies the freedom to increase diesel prices has the potential to create problems for the United Progressive Alliance (UPA) government, with the Samajwadi Party (SP) terming the move as “anti-farmer” and the Bharatiya Janata Party (BJP) threatening to hold “nationwide protests”.
The Union government is also facing severe criticism from Trinamool Congress (TMC), a former ally, which has described the decision as “all gas and gimmick”. The CPI(M) has said the decision is an “attack on the people” and prices of diesel will now continue to rise like petrol prices.
“The government needs to review its existing oil pricing policy and the decision for partial deregulation of diesel should be reversed. This proposed hike will be a massive blow to the farmers,” said Rajnath Singh, former BJP president.
“The policy is a glaring example of insensitive approach. It has permitted oil companies to go for Rs 9.60 per litre hike in coming months which will further stoke inflationary expectations in the economy.”
The government today decided to increase the number of subsidised cooking gas cylinders per household from six to nine and allowed oil market companies to raise diesel prices till they are able to cover the Rs 9.60 per litre loss they incur on the fuel now.
“It’s an attack on the people. The price of diesel will keep on increasing just like petrol,” said Prakash Karat, general secretary of CPI(M).
Senior BJP leaders pointed out the government did not declare its hydrocarbon pricing policy although it was promised by UPA in its manifesto.
