Top government sources confirmed that the issue of the hike in oil prices and the process of convincing reluctant allies accelerated after the Indian Oil Corporation results came out last week. This was followed by a Congress Working Committee meeting, which had been ostensibly called to discuss the Karnataka Assembly poll results on Friday but also discussed the proposed hike.
"After the meeting, External Affairs Minister Pranab Mukherjee and some other senior ministers of the government were deputed to convey Sonia Gandhi's message to the allies," said a source. The message was simple: "No government wants to ask the people to shoulder such a hike, but we are helpless. We need the government to be united on this."
Nationalist Congress Party (NCP) leader Sharad Pawar did not need any persuasion. "Pawar agreed that this was the only way out," said a senior source. Rashtriya Janata Dal chief Lalu Prasad was also brought on board. DMK leader Karunanidhi was, however, a tricky customer, and the government feared his reaction the most. "Pranab Mukherjee went to Chennai to wish Karunanidhi on his 85th birthday and spoke to him on the matter. Karunanidhi was also persuaded, albeit his condition was that the hike not be announced on his birthday," said a top source.
Perhaps just as tricky was getting Finance Minister P Chidambaram to agree to cut Customs duty on import of crude oil. Top sources confirm that Prime Minister Manmohan Singh had a role in getting the finance minister to agree. After all, he would be taking a hit of around Rs 22,600 crore with the duty cut. "If the price of petrol has been raised by Rs 5, the government should be seen as having done all it can to cushion the hike," said a source.
Significantly, Congress sources say that even the Left was part of the consultative process, despite the fact that after the hike was announced, the Left has decided to call a
