The Hindu : National : We have not agreed to oil price hike: Left parties

Online edition of India's National Newspaper
Tuesday, Jan 15, 2008
ePaper | Mobile/PDA Version

National

National

We have not agreed to oil price hike: Left parties

New Delhi Bureau

NEW DELHI: The Communist Party of India (Marxist) and the Communist Party of India on Monday vowed to oppose any hike in the prices of petroleum products.

In a statement here, the CPI(M) Polit Bureau said: “At a time when people are already suffering from the spiralling prices of essential commodities, any hike in petroleum prices will further add to their burden.”

Referring to reports in a section of the media that the government had consulted the Left and got its consent for the price hike, the CPI(M) denied that any consultation took place.

“On the contrary, the CPI(M) has been consistently opposing any hike in the prices of petroleum products. It is estimated that the Central government has collected Rs. 40,000 crore more than the budget estimates through ad valorem taxes. If this amount was returned to the oil companies, the necessity of increasing prices would not arise,” the Polit Bureau said.

“Curb consumption”

CPI leader Gurudas Dasgupta asked the government to reduce the tax on petroleum products and curb their consumption.

He denied as “false and fabricated” reports that he had agreed to a minor price hike during a meeting with Petroleum Minister Murli Deora.

“Neither did he call me nor did he meet me. Even if he had done so, we would have never agreed to such a suggestion,” Mr. Dasgupta told TheHindu. He said there was absolutely no justification for any hike, even marginal.

“The government should take care of international price rise by reducing taxes and curbing the consumption of petroleum products in the country particularly by private car owners and airline services,” Mr. Dasgupta said.

“If the petroleum prices are increased, it will further escalate inflation already unbearable for the people.”

BJP wants pricing policy before hike

Higher international prices should not become an opportunity for the government to make additional revenues through more taxes collected on each barrel of imported crude. Instead a “revenue neutral” pricing policy must be put in place before any hike, the Bharatiya Janata Party said. Any revenue hike in the oil sector would lead to all-round inflation.

A policy which would do justice to the consumer, the oil companies and the government could be put in place, BJP spokesman Prakash Javadekar.

From Rs. 70,000 crore the government earned from taxes on petro-products in 2004, the revenue went up to nearly Rs. 1,40,000 crore this fiscal. “This is nothing but loot,” Mr. Javadekar said. He demanded implementation of the 2004 Expenditure Finance Commission report, which explained the rationale of a revenue neutral policy. he BJP said it would oppose any hike before a pricing policy was put in place.

It also demanded implementation of a policy to blend ethanol with petrol to make fuel for transport cheaper and greener. Such a policy would also benefit farmers, especially sugarcane growers, as several good crops led to a glut in sugar in the market. This problem could have been avoided had some sugarcane been diverted for ethanol production.

On the raging fire in Kolkata’s Burrabazar, the BJP said it was shocking that CPI(M) leaders were making speeches at a rally in the city even while the market was burning. This was the third major blaze in the Burrabazar and the West Bengal government failed to learn lessons.

Printer friendly page
Send this article to Friends by E-Mail

National