Tuesday, Nov 08, 2011
Gulf News
New Delhi The Trinamool Congress’ threat of pulling out of India’s ruling United Progressive Alliance (UPA) may work with indications that the federal government is preparing to partially rollback the recently hiked petrol prices.
In its bid to keep up pressure on the government, West Bengal Chief Minister Mamata Banerjee, who is also the president of the party, is slated to meet federal Finance Minister Pranab Mukherjee in the state capital Kolkata today while her party’s central lawmakers are slated to call on Prime Minister Manmohan Singh in the evening to reiterate their demand for a rollback.
The three government-owned petroleum companies increased the retail price of petrol by Rs1.83 (Dh0.13) per litre from Friday midnight much to the chagrin of consumers as the price of petrol has gone up by about Rs17 from the beginning of this month.
Trinamool Congress, which rules West Bengal, took up the cause and asked for the rollback threatening to pull out of the UPA. Trinamool Congress, with 18 lawmakers, is the second largest constituent of the UPA behind the Congress party.
Although its pullout may not bring down the federal government, it could have turned out to be bad publicity for the Congress party, which heads the UPA, ahead of polls in five states early next year.
Although Prime Minister Singh was out of the country to attend the G-20 Summit, the demand has landed in his court for the final decision.
Singh, himself an economist of repute, favours deregulation of petroleum prices. However, due to political compulsions, he is expected to promise the Trinamool delegation a partial rollback and promise not to hike the price of diesel and LPG.
While the petroleum companies justify raising the price on the grounds of an increase in crude oil prices and depreciation of the Indian rupee, those opposed to it point out that there is scope to bring down the prices as 40 per cent of the price is taxes and duty levied by the federal and state governments.
Reuters
Anger on streets
An activist from the Lions Welfare Society, a social organisation, wearing a ‘common man’ tag on his shirt, shouts anti-government slogans during a protest against a recent hike in fuel prices in Chandigarh.
By Ajay Jha?Chief Correspondent
Gulf News 2011. All rights reserved.
