The government on Sunday put up a brave face on its decision to partially de-regulate fuel pricing even as Left parties and the BJP-led National Democratic Alliance prepared to stage a nation-wide bandh on Monday to protest against the fuel price hike.
Petroleum minister Murli Deora on Sunday said the bandh called by the Opposition parties on Monday was uncalled for as the price rise had a minimal impact on the common man.
?The protests by Opposition parties is nothing more than misleading the people as these parties have been instrumental in notifying the de-regulation of prices of petroleum products, reducing subsidies in November1997 and in implementing the programme from April 2002,? an official statement said quoting Deora. The minister said the proposed bandh was also against the interests of the poor and daily wage earners. While the labourers would be deprived of their wages, the bandh will cause inconvenience to the public at large, the minister said.
?The Rs 3 per litre increase in kerosene translates into an increase of only 50 paisa per day per family,? the statement said, quoting Deora. The price increase of domestic LPG by Rs 35 per cylinder means?an increase of less than Re 1 a day per family. The impact of the price revision on the common man is therefore, negligible, the statement said.
State-owned fuel retailers still bear the under recovery of?approximately more than Rs 1.50 a litre of diesel in the interest of consumers who comprise of farmers, transporters and industry, the minister said. He said the decision will have only marginal impact on the rate of inflation.
Deora also criticised the Opposition for their hypocrisy on the issue of fuel pricing as the NDA regime had raised the price of kerosene from about Rs 2 a liter to Rs 9 a litre. However, during the UPA regime, there was no increase in the price of kerosene during the last six years.
Now, the price has been marginally increased from Rs 9 a litre to Rs 12 a litre, he said. Deora also said the government did not pass on the entire burden of higher prices to the consumer when crude price in the global market had touched the all-time high of $142 a barrel in July 2008.