Everybody except Congress slams diesel price hike, LPG policy
MDT/PTI 14 September 2012

The price hike has come as a cruel joke and 'mortal blow' to the common man and farmers already reeling under inflation and drought like situation

New Delhi: Slamming the government over diesel price hike, UP allies Trinamool Congress and Samajwadi Party have demanded an immediate rollback while the opposition said the increase will further hit the common man and create "mayhem" in the economy, reports PTI.

 

"We are unhappy. We will not accept it and demand its rollback," Mamata Banerjee, chief of Trinamool Congress, the second-largest constituent of the UPA said in Kolkata.

 

"If people do not mind, I will be most happy to withdraw support (to the UPA). If I withdraw support then other parties will provide support to them. And, then ask why we left the UPA which led to its collapse. People had misunderstood us when we had withdrawn support earlier."

 

The Trinamool Congress would take to the streets for 72 hours from Friday opposing the decisions, she said.

 

Demanding an immediate rollback in diesel prices, the Samajwadi Party, which provides outside support to the UPA, said, the decision is ill-timed.

 

"We demand immediate withdrawal of the hike as it will badly hit the common man and farmers," SP leader Kamal Farooqi said.

 

Their sharp reaction came after the government decided to hike diesel prices by Rs5.62 per litre effective Thursday tonight.

 

The Cabinet Committee on Political Affairs, headed by Prime Minister Manmohan Singh, had decided to raise diesel prices.

 

It also decided to restrict supply of subsidised cooking gas to six cylinders per household in a year.

 

The BJP termed the price hike as a cruel joke and "mortal blow" to the common man and farmers and charged the government with conspiring with petrol 'mafia'.

 

"This is a cruel joke on the common man in the country. It has hit farmers hard during the peak paddy sowing season. We will not allow this hike. We will not allow this government to loot the common man like this," BJP Vice President Mukhtar Abbas Naqvi said.

 

BJP leader Yashwant Sinha said, "Diesel increase will have a cascading effect on the economy as a whole. Prices are already not under control, so this is going to contribute to overall inflation and create mayhem in the economy."

 

CPI National Secretary D Raja termed the decisions as "retrogade and anti-people".

 

"It will have an adverse effect on the prices of essential commodities which are already high. It will further increase hardship of common people. Government should not go ahead," he said.

 

AIADMK supremo Jayalalithaa accused the Government of constantly betraying the people. She said the diesel hike would result in increase of prices of essential commodities and vegetable.

 

"I demand the rollback of the hike in diesel price and ceiling in cylinder subsidy," she said.

 

"Even a family of 4 persons need the use of at least one cylinder per month. Hence they will also have to ease out the 6 cylinder norms, which is absolutely unreasonable. It goes without saying that the scam money is not with the exchequer but with others like the nexus of politicians-bureaucrats - businessmen who have pocketed the loot. Therefore it appears that the Government is left with no options but to raise the prices of diesel and do away with subsidies to augment the Government resources. They are least bothered if the common man suffers or survives on account of this price onslaught," said Dolphy Dsouza, former National Vice-President of All India Catholic Union and immediate Past President of The Bombay Catholic Sabha.

 

Admitting that it was an "unpleasant" decision of the government, Congress said it was not in favour of a hike to such an extent because it hurts the farmers and the common man.

 

Government has to take a conscious decision after taking all allies of the UPA into confidence, party general secretary Digvijay Singh said, adding that the issue should be discussed in the UPA coordination committee.

Comments
M G WARRIER
1 decade ago
This is a move which affects aam aadmi already struggling to make both ends meet. What is intriguing is the recent attempts by government to compartmentalize or divide consumers to avoid direct confrontation with a class of consumers. Such an effort is evident in charging double the cost of sixth cylinder for the 7th one, differential charges for electricity for use during normal hours of consumption in Kerala, dividing employees into two categories for pension benefits (in this case without any legislative sanction) and so on. The absence of transparency in governance is going to cost the nation heavily. Credibility once lost will be difficult to restore.
PPM
Replied to M G WARRIER comment 1 decade ago
UPA is not worried about the aam aadmi as they are keen to sell india in parts to foreign countries. Prime Minister is smiling today, that means, what he has done today (allowing FDI in retail ans airlines)is approved by his masters.Also, increase in diesel price and restriction in gas cylinder will divert the attention from COALGATE to Diesel /LPG.
Shadi Katyal
1 decade ago
The very fact that GOI has been involved in such large subsidies that now it must start to wean the public. Diesel for farmers is a joke as it is the biggest land holder who take advantage and not a poor farmer.Even car owners enjoy this subsidy.Has it been left in provate sector from day one,we will not be seeing this turmoil.We must educate our political parties about the cost of CRUDE OIL and its effect on our budget and economy and start to learn that populism may bring votes but it leaves a bad taste when prices are increased. We in India must learn to wean away from such subsidies. We must face the reality and truth of world prices and no party should exploit for votes and harm the nation
M G WARRIER
Replied to Shadi Katyal comment 1 decade ago
Subsidy is not just restricted to oil prices. When land or natural resources are 'gifted' to private sector, there is an element of subsidy. Every year, huge subsidies are given to business houses thru tax concessions.There is a reverse subsidy, when workers are not paid real wages. That is where, we have to see things in the Indian context.Even the losses estimated by CAG should be seen as subsidy given by the exchequer(read tax-payer)
Shadi Katyal
Replied to M G WARRIER comment 1 decade ago
This is a typical socialist answer when we donot wish to facew the truth that no Govt in the world can continue to subsidise any product for a long time unless revenues also inrease.We have lived too long on such subsidies.
the Industry is provided where it generates Revenues and employment for the people. One can complain about wages but do we have any Minimum wage set up in any state.Indusries can pay levish wages but prices of products will be higher for all of us.
Was the M
M G WARRIER
Replied to Shadi Katyal comment 1 decade ago
Ok Do not worry about isms. Try and understand the impact of subsidies and 'reverse' subsidies on aam aadmi. There is a Minimum Wages Act with state-wise amendments reading which a person of average intelligence like me will not be able to make head or tail out of it. You can accuse my arguments to be 'socialist', but do we not have to take care of the basic needs of the majority? Saying one thing twice, does not make the listener wiser.
Shadi Katyal
Replied to M G WARRIER comment 1 decade ago
This is a typical socialist answer when we donot wish to facew the truth that no Govt in the world can continue to subsidise any product for a long time unless revenues also inrease.We have lived too long on such subsidies.
the Industry is provided where it generates Revenues and employment for the people. One can complain about wages but do we have any Minimum wage set up in any state.Indusries can pay levish wages but prices of products will be higher for all of us.
Was the M
M G WARRIER
1 decade ago
This UPA and its allies are making a mockery of parliamentary democracy. Some of their allies are in the opposition also! Whatever way you throw you up, sufficient number to sustain the government will make a formation and frown at you. Saw leader of one of the coalition allies lamenting that 'I am willing to withdraw support to government on this issue, but some other party will come and rescue!' A sad day for Indian democracy.
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