Customs duty cut not enough, fumes Left

Although the United Progressive Alliance government met the Left parties' demand for reduction in Customs duty, it failed to mollify its allies.

Opposing the hike in the prices of petrol and diesel, the CPI(M) today demanded that the government rescind its decision and called upon all party units to immediately protest the hike.

Significantly, the Congress termed the hike as "a little too much" and asked the government to reduce it.

"Although we understand the compulsions of the government given the rise in international crude oil prices and also the fact that it has been necessitated due to the indecision of the previous NDA regime, we oppose the hike as it will put a huge burden on the common people. The Congress demands that it be reduced," party spokesman Rajiv Shukla said.

Senior CPI(M) leader Nilotpal Basu said reducing Customs duty was "too little" and it hardly addressed concerns raised by his party. "What concessions have they given? The fundamental issues have not been addressed. Under-recoveries are notional and not actual losses."

He said the actual financial position in terms of profits/losses of oil marketing companies (OMCs) as well as stand-alone refineries should be assessed. "How is it that while consumers have to pay more, the government's revenue collection is increasing," added the CPI(M) leader.

CPI National Secretary D Raja said reduction in Customs duty was "not the only suggestion" and the government had ignored the basic concerns of the Left parties.

The CPI(M) Politburo said in a statement on Monday evening that the fifth successive hike in petroleum products in a little over two years was "unconscionable" and would impose an unbearable burden on the people who were already suffering from the rise in prices of essential commodities.

"The increase in the price of diesel will affect transportation costs on farmers and have a cascading effect on inflation," said the statement, adding that the Left had already decided to consult all other parties to announce a one-day all-India protest. The CPI will organise a protest demonstration in Parliament on Tuesday.

Although Left sources said the protest was likely to be held on June 13, a final decision would be taken after the four Left parties hold consultations tomorrow.

CPI(M) General Secretary Prakash Karat was learnt to have met UPA Chairperson Sonia Gandhi on Monday evening in the wake of the government's decision on the price-hike.

He had, on Sunday, spoken to Prime Minister Manmohan Singh following which the Left parties sent a note to the prime minister this morning re-iterating their opposition to the price hike and their prescription to offset the rise in international crude oil prices.