The Tamil Nadu Foodgrains Merchants Association has written to the Prime Minister Manmohan Singh asking him to withdraw the recent price hike of diesel, Kerosene and LPG.

The Union government on Friday decided to increase the price of diesel by Rs. 3 a litre, kerosene by Rs. 2 a litre and domestic LPG by Rs.50 a cylinder.

In a letter to the Prime Minister, association president S.P. Jeyapragasam said that Tamil Nadu was dependent on northern States for meetings its requirements of essential commodities such as pulses and dal. These are transported mostly through trucks and vans.

At present, industries and food processing units were dependent on diesel generators due to the power shortage prevailing in the State.

The increase in diesel and kerosene prices would be result in higher prices for these commodities.

He also termed the increase of Rs. 50 per LPG cylinder as “very high” and said that it would affect all sections of the society. The association urging Dr. Manmohan Singh to factor in all these points and roll back the price hike.

Lorry owners

The Lorry Owners Association here has said that their freight charges to destinations in other cities and States would be increased by 20 per cent from July 1.

In a statement, the association said that lorry owners were also suffering from high charges at toll gates, increase in prices of tyres, a 70 per cent hike in third party insurance premiums and increased prices of spare parts.

Call to slash taxes

It also called upon the Government to slash the taxes and other levies on diesel rather than pass on the increased cost in global crude oil market to the end consumers.

The association also urged the Chief Minister Jayalalithaa to intervene in this issue by calling upon the Centre to scrap the price hike and reduce the taxes levied upon the fuel by the State Government.

Keywords: fuel price hike

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