The Hindu : Andhra Pradesh News : Rajasekhara Reddy for oil price hike rollback

Online edition of India's National Newspaper
Wednesday, Jun 22, 2005

Andhra Pradesh

Andhra Pradesh

Rajasekhara Reddy for oil price hike rollback

W. Chandrakanth

Chief Minister to take up the matter with Centre

HYDERABAD: The Chief Minister, Y.S. Rajasekhara Reddy, has decided to seek roll back of petroleum prices by the Centre as it is not in the interest of people.

Dr. Reddy reviewed the situation arising from steep hike in the price of diesel and petrol which, he felt, ran contrary to his Government's efforts to project a `pro-poor image' and against the backdrop of the protests launched by opposition parties in the State on Tuesday.

He will be leaving for New Delhi next week and is expected to mount pressure on the Union Cabinet by bringing the public anger to its notice.

He is said to have expressed concern over the cascading effect of the hike on the prices of essential commodities since the increase in Andhra Pradesh is higher than any other State because of its Sales Tax structure. The State has the highest Sales Tax in the country at 32.55 per cent for petrol and 21.33 per cent for diesel. Now, it will go up to 33.05 per cent and 23 per cent respectively. As a result, a consumer in Hyderabad now pays Rs.45.86 for a litre of petrol and Rs.31.84 for diesel.

After reviewing the impact of the price hike on the economy of the State, the Chief Minister is said to have explored the possibility of the State Government containing the collateral damage of the fare hike, it is learnt.

He has instructed APSRTC officials here not to burden the commuters by going in for any fare hike immediately in spite of the additional burden of Rs. 106 crores due to revision of the price of high speed diesel. "People of the State have suffered the impact of drought in the recent years and they are in no position to absorb the hikes," he reportedly stated at the meeting.

Centre's compulsions

Dr. Rajasekhara Reddy, at the same time, expressed happiness at the decision to exempt kerosene and LPG from the hike despite the fluctuations in the international markets.

He said he understood the compulsions of the Centre in going in for the hike but a re-examining of the decision was necessary in the interest of people.

The latest hike has come as a rude shock to the State Government which so far could insulate the people from petro-price hikes.

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