Cong, UPA see eye-to-eye on petro prices

There are no differences of opinion between the Congress Party and the UPA government over the oil price hike, notwithstanding the ruling party's public pronouncements about the increase being "a little too much" for the common man. According to top party sources, the Congress is convinced with the government's arguments against any rollback of or reduction in price hike.

"This cannot be helped. It is difficult for the government to go for even partial rollback. It is really difficult," a top Congress leader told the Business Standard on Wednesday evening.

Petroleum Minister Murli Deora's meeting with Congress President Sonia Gandhi on Tuesday had given rise to speculation that the UPA regime is considering a partial rollback. As it was, the minister had only explained the government's compulsions that forced its hands. The Congress High Command understands the government's predicament, said party sources.

Congress spokesman Rajiv Shukla's re-assertion of the party's demand for a partial rollback on Wednesday was, therefore, meant only for 'public consumption' and a part of the party's strategy to counter the Left allies and the Opposition BJP, which have hit the streets against the petro price hike.

On Wednesday, the government and the Congress Party, in fact, came out with a joint strategy to take on the Left on this issue. Petroleum Minister Murli Deora and Rajiv Shukla raised the issue of the sales tax on petro products imposed by the states. If the states were to lower their tax rates, consumers will not feel any impact of the latest increase in petro price, they said apparently in a bid to put the Left parties on the defensive given the steep sales tax rates on petro products in Kerala and West Bengal.

The immediate reaction of the Left was one of confusion and shock. "This is the latest trick they are playing. The issue of oil price hike merits seriousness. Only then can we react. You cannot throw stones at others' glass windows when you are yourself in a glass house. They have to first explain the rationale for this hike, which hits the common man."

The UPA allies were, however, ready with counter-arguments soon. "We are ready to discuss the sales tax in states also- but not just on petro products. There is a larger issue of the sharing of taxes between the Centre and the Staes. Many states including West Bengal want it 50:50," said CPI national secretary D Raja.

On its part, the government is learnt to be planning to launch an advertisement campaign to explain the reasons for its decision to the people, the common man.