Mamata holds out a threat; Congress shares allies' concern
Even as the Mamata Banerjee-led Trinamool Congress (TMC), the second largest party in the United Progressive Alliance (UPA), threatened to withdraw support at the Centre if the Union government did not reverse the hike in petrol prices, the Congress stepped into the breach to make soothing noises on Friday,
Congress spokesperson Abhishek Singhvi, expressing his party's concern at the hike, said the allies' protests “would be heard with understanding, seriousness and compassion,” as he saw them as a sign of “sensitivity,” not “divisiveness.”
The Congress response came soon after the Trinamool's threat and a demand by the Nationalist Congress Party (NCP) and the National Conference (NC) to review the hike.
In Kolkata, Ms. Banerjee told journalists that since the Trinamool's “withdrawal of support may result in the fall of the government,” she would await the Prime Minister's return to “discuss [the matter] with him.”
While NC leader and New and Renewable Energy Minister Farooq Abdullah told journalists that he would raise the matter at the next Cabinet meeting, NCP general secretary Tariq Anwar asked the government to “devise some mechanism to check frequent hike in petrol prices.” The two leaders, however, quick to point out that the government did not touch the prices of diesel and cooking gas, items of mass consumption.
Sources in the Congress too agreed that there could be some review of the decision after Prime Minister Manmohan Singh returns from the G-20 summit in Cannes, even saying some way other than reverting to the administered price mechanism could be found to help ease the burden on people. But sources in the government ruled out any rollback in the hike.
Sources in the Petroleum Ministry told The Hindu that since pricing had been deregulated, the government had no role. “If the States want, they can reduce the taxes on petrol to provide relief to the consumer; the Central government can do nothing,” the sources said.
Keywords: Congress-Trinamool ties, Fuel price hike, UPA-II, Manmohan Singh government, coalition politics, Mamata Banerjee, inflation
Few years back petrol stations belonging to Reliance in our small state of Kerala closed down saying they can't compete with govt owned petroleum companies in price. I still remember the reliance petrol was offered almost 5 rs more than state owned petrol. Now Reliance petrol stations are reopened and is selling at a price equal or even less than the state owned petrol companies. Why is that so? What happened suddenly? Reliance discovered any new oil well? I really feel that this increase to an extend is to help private petroleum companies. Our country is fast becoming another US in the Moto - for the corporates, by the corporates. This is highly dangerous.
I strongly feel that these price hikes are due to mismanagement. Why do we have several oil distribution cos like IOC, BP, IPB, HP, etc when they are inefficient in bringing down the manufacturing cost of petro products and what the R&Ds of various oil cos and Govt of India are shitting after swallowing crores & crores of rupees. Why the Govt of India is not considering merging all the useless cos into one to cut high payouts and simpling passing hikes to innocent citizens, who get fixed pay and struggling with various other issues due to poor governance. If India is ran out of innovative ideas on fossile fuel replacement, why cannot copy Brazil in blending with cost effective ethanol, as we are one of the largest sugarcane cultivating country in the world.
In current pricing of Commodities, when supply/demand and cost of production of goods have no relation to setting prices to make reasonable profits, Time has come to really examine the system. It will be advisible for a democratic government to look at the pricing structures of essential goods at Commodity speculation pits. Fairness is at issue. So any government should be concerned at what is happenning in the So called Commodity Trades. As PM was saving "People have only so much money". So Indian people should not subsidize a Rig Oil Market. Oil price was at $32.oo/bbl in March 2009 and $20/bbl in 2001. In Ten years prices have gone up by say 450%: What is the reason ? Let us find out.
I don't think Mamta will take extreme step.This is her show business to satisfy her voters of Bengal.She know UPA government helpless to control oil prices.They depend on international circumstances.
How come The Government of India is misleading the people on Petroleum prices. Just read the article www.thehindu.com/todays-paper/tp-opinion/article1281085.ece
It clearly shows all is not well with petroleum prices. The government will always use the word under recoveries which they are considering as losses increasing the petroleum prices.
I sometimes where the country is heading. I am a ordinary middle class citizen paying my taxes in time. What am I getting in return? All The government policies are either pro rich ( oil price is increased to help some private oil companies to be more competitive) or pro poor (nrega, loan subsidies, free tv, grinder etc)... As a ordinary forward class citizen I am actually treated worse then even the most back class people. I have to fight for getting admissions on top colleges. Thanks to IT sector, I am getting jobs. But I am asking any of these things from government. Can't the government provide me with proper roads, fuels at reasonable prize, hygienic water, good education, pollution free air, metro transport...it's been more then sixty years since independence, and what has the congress done? I am not really any more patriotic towards my nation.
The Prime Minister, who is an economist, seems to have unfortunately forgotten that economics is only just a part of social science which is the scientific discipline that deals with sociology, psychology, anthropology, economics, political science, and history. When the Prime Minister says that pricing of goods and sevices should be left to the market forces to decide on, he is clearly overlooking the fact that economics is just one dimension of social science and other dimensions of this science are equally important to society. Why are even left-leaning economists of this country not talking on the PM in this matter? Aren't economists as a class letting the people of this country down? It would seem so!
Just for the information, in the EU the avarage price for gasoline is above 1,5 euros (100 Rs), of which 3/4 is taxes. No subsidy, but a heavy tax - among others to fund public transport services. Since India imports more than 90 % of its oil from international markets, there is little room for price control either by the oil companies or the government. There must be other ways than gasoline subsidy to help the mobility of the poor, such as investment and subsidy in public transport and making non-motorised mobility safer.
By increasing the petroleum prices regularly,which indirectly increases the prices of all commodities, the UPA Government is hitting the common man. The prices of all commodities will now increase and RBI will increase the repo rates, then automatically RBI will increase the interest rates of poor man's housing loan.This is the fifth time this is happening in this year.If Government is really concerned about the common man, they should revise the price increase with immediate effect.By increasing the price of petroleum products the inflation rates will naturally go up. Govt. should understand the anger of common man, and take all preventive measures to check the inflation, otherwise public will not allow the 3rd UPA to come to power.
Ms.Banerjee's statement of withdrawing support is something which is related with the drawing more funds for her state West Bengal.In my opinion she is not serious in taking her party's support back but one thing is sure that she has used this god sent opprtunity to hijake the Central Govt.Bengal desperately need a Central support and fund to bail out her state which she(Mamta) herself knows very well.So her statement of taking support back is not more than just a good strategy to put pressure on Central Govt.for realising more and more fund(Central)for the development of West Bengal.Here being a resident of Bengal I support Mamtaji's strategy.
What I see, renewable energy is the only solution!!
Mamata has revealed her political acumen. She grabbed the opportunity to become dear to 1.2 billion citizens of India after being dear to citizens in Bengal. She sure wants to serve the entire India. That's her ambition for sure.
It is time, the govt should educate the people how oil is made and the implications of not aligning the fuel price to the markets. These politicians are agitating and cheating the ignorant people for votes. The people should understand that if the fuel price is charged from the rich who are the majority users, the poor will have to pay from the various taxes.
The Government has to listen to the opposition parties against price hike of petrol as UPA allies like Trinamool Congress, National Conference and National Congress Party asking to take stern action to take back the deceison on hike of oil prices. The government gave free hand to the oil companies to hike the oil prices at their wish but the oil companies deny to reduce the rates of oil when the global prices are reduced. Why? Anyhow, the partners of UPA also echoed the same of oppoistion and the people.
Sir,the petrol price hike, month after month, is a serious matter.The refinery Cos, most of them in our country are PSUs do this frequently on the plea of increase in their crude costs due to rupee devaluation vis-vis $.The govt is keeping quite because of all the petro products derived from oil crude only petrol is deregulated! This is very bad. No doubt the present lowering of the rupee rate vis-avis $ has increased the crude price. There are ups and downs every day in the rupee/$ rate. But rise in petrol price once allowed remains permanent.Hence the PSU Oil companies should find other ways to reduce their costs,like their staff wages.I give one example: retire their staff including their officers on attaining their age of 55 yrs and should not extend all govt benefit rules as when the govt grant to their officers in their annual budgets.
That was really awesome to see mamta bannerjee come out and speak out
in public against the UPA govt. threatening to withdraw her support
from the govt.,this decision has seen a nationwide fury.,does congress
really think that it would be able to defend itself by giving the lame
excuse that price hikes is not in our hand...What a shame...
And after all this congress spokesperson comes out and say:"Don't
threaten us Anna Hazare'...
But I really appreciate the UPA govt. for giving us various reasons to
stand united...first time after the freedom struggle
It is very bad state of affair of the Central Government. The UPA Government is not in a position to heed the requests or demands of their UPA alliance partners even ministers also. No Government hiked the petrol rates three times in a year without caring the people. All parliamentarians irrespective of political parties should initiate to reverse the petrol hike prices.
Instead of making much noise around Fuel prices,
govt. should focus and fund researches on renewable energy
sources.
Political posturing or not, hats off to Mamata for standing up. Mr. Pranab Mukherjee says that it is the Oil Companies who are increasing the prices. Then what is a Government for? This is not a luxury item like gold, rather it is an essential commodity like rice or onion. And who granted this price controlling power to the Corporations. Why pass the buck now after over-promoting privatisation in the oil sector? Another example is the systematic destruction of Air India. Pranab is widely respected, unlike half of his colleagues - he should think before he speaks.
Why is the government not charging a higher price for diesel that is dispensed for cars, used by middle and upper class?
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