Left refuses to budge on fuel price hike

Party leaders seek full exemption of excise duties on subsidised petroleum goods.

Communist Party of India (CPI) leaders today met Petroleum Minister Mani Shankar Aiyar and asked him not to hike prices of petroleum and diesel but to effect changes in duty rates so that the common man was spared.

The government is holding consultations with its political allies before deciding on raising fuel prices by the end of the month. Oil marketing companies have not increased prices since August and are facing under recoveries of Rs 2,000 crore as international crude prices soar.

CPI leader D Raja said the Left parties were in the process of consultation in order to formulate their stand over fuel prices.

Party leaders Raja and AB Bardhan sought full exemption of excise duties on subsidised petroleum goods.

"We have conveyed that we understand the rise in international oil prices but at the same time the common people should not be burdened," Raja said after the meeting. "The government should try to adjust the duty rates."

Raja said the party had asked for at least a 5 per cent cut in customs duties on petroleum products since any hike in diesel prices would have a cascading effect.

On excise, he said duties on the subsidised petroleum products "" kerosene and cooking gas "" should be done away with.