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Petrol price hiked in INDIA

Discussion in 'World Affairs' started by ashokdeiva, May 23, 2012.

  1. ashokdeiva

    ashokdeiva SENIOR MEMBER

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    Petrol price hike: Unjust and unilateral, says Mamata; won't pull out of government

    Petrol price hiked in INDIA

    New Delhi: Starting at midnight, petrol will cost Rs. 6.28 more per litre, exclusive of taxes, effective midnight. This is the steepest hike ever for petrol in India, and prompted calls for a rollback from leaders who are key to the government's survival - Mamata Banerjee, M Karunanidhi and Mulayam Singh Yadav. Even Congress heads of government like Sheila Dikshit are upset, indicating that the price hike may once again position the Congress vs the government, and prompting speculation of whether a partial rollback may have been built into the hike. (Read: Dinner diplomacy gone, Mulayam's party slams petrol price hike)

    The revision in petrol prices comes as the rupee hit an all-time low of Rs. 56.19 against the dollar. The actual increase in prices will vary from state to state depending on sales and local VAT taxes. (Read: Petrol prices hiked, could diesel , LPG be next?)

    Within half an hour of the new prices being announced, there were long queues at gas stations across the capital.

    Amid anger from allies, Finance Minister Pranab Mukherjee said, "The decision has been taken, petrol is a deregulated commodity." That will not pacify key partners like Ms Banerjee, a senior member in the UPA coalition at the Centre.

    She described the hike as "unjust and unilateral" and said allies had not been consulted by the Congress about the decision. She however clarified that her Trinamool Congress will not pull out of the government. "We are not like the CPM or other parties. We are for economic and political stability. Since we have a commitment to support the government, we are not exiting. But that does mean we will not protest what is wrong. What is going on is wrong, one-sided..." she said. She also asked why the government waited till after the Parliament session ended to green-light the price hike.

    The DMK, another senior ally in the UPA, said the government should reconsider the hike and reduce it. "It is unfortunate, it will affect the salaried class, the common man," said the party's TR Baalu.

    Party chief M Karunanidhi said his MPs will ask the Congress for a roll-back. On Wednesday, as the UPA celebrated its third year in power with a dinner at the PM's house, the DMK's MK Alagiri had said he gives the coalition 100% in its performance so far. The party's stand appears to have changed after the price hike.

    Petrol will cost Rs.73.14 per litre in Delhi against the existing price of Rs.65.64 per litre. In Mumbai, petrol will now cost Rs.78.16 per litre, while in Kolkata and Chennai, it will cost Rs.77.53 per litre.

    Finance Minister Pranab Mukherjee has blamed global uncertainties and the rising oil imports bill for the battering of the Indian currency. "The quantum of India's oil imports is substantial at around $160 billion to $170 billion annually," he said.

    "Given the losses being incurred, the Company is compelled to increase the price of petrol by Rs.6.28 per litre (excluding VAT/Sales Tax) with effect from midnight," the country's largest oil firm, Indian Oil Company, said in a statement. "This excludes losses already suffered till date during current financial year 2012-13, which would require an additional increase of around Rs. 1.50 per litre in selling price of motor spirit (MS) for balance part of the year," Indian Oil said.

    India deregulated petrol prices in June 2010 but continues to subsidise kerosene, petrol and cooking gas to protect the poor from the impact of any inflation pressures. In the second half of 2011, oil companies began reflecting market realities more closely and raised petrol prices but were stopped from end-November on the request of the government - their majority shareholder - ahead of elections in some states. Petrol prices were last revised on December 1.

    State-run oil companies have been losing Rs. 8000 crores per annum because they were being forced to sell petrol at subsidised rates.


    Personal Note : The current UPA government is the worst ever governance that Independent India has witnessed in the history.
    These governing fools did not do any thing to prevent the depriciation of the Indian Currency INR and because it touched a all time low of 56 rs VS the US $, it became inevitable that the price of essential commodities has to be increased.
     
  2. itaskol

    itaskol FULL MEMBER

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    Oil prices drop to lowest levels of the year - Yahoo! News
    the international oil price is sinking today.
     
  3. IndoCarib

    IndoCarib ELITE MEMBER

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    Welcome move by UPA. Our oil companies are bleeding. Mamata as usual playing populist politics.