Left parties criticise diesel price deregulation

‘Oil companies made a profit between 2007 and 2012’

: Criticising the Bharatiya Janata Party at the Centre for its decision to deregulate diesel prices, Left-leaning parties in West Bengal said the common man would be the worst hit.

The Centre on Saturday stated that diesel prices were reduced by Rs.3.37 per litre and announced that diesel prices would now be directly linked to the market, making consumers vulnerable to any price fluctuations as the subsidy has been withdrawn. Petrol prices were earlier deregulated by the United Progressive Alliance (UPA) in the previous government.

Pointing out that diesel is used by goods vehicles and public vehicles, former West Bengal Finance Minister and senior leader of the Communist Party of India (Marxist) Asim Dasgupta told

The Hindu that fares of public transport woul be affected.

“The government owes an answer to the common man for such a move as the common man will now have to bear the brunt of any fluctuation of diesel prices. Although presently prices are decreasing, the long term trend of diesel prices has always been on the rise and it is set to increase soon,” Mr. Dasgupta said.

Calling it a ‘big stunt’ of the government to reduce diesel prices, the Socialist Unity Centre of India (Communist) stated in a press release that prices would soar substantially under the pretext of spurt in global crude oil prices.

According to the release, the price of crude oil per barrel (almost 159 litres) is roughly $84. Along with the prevailing transport and import costs, import cost of a litre of crude oil comes to Rs.33.

Taxes increase burden

“The retail tariff for petrol and diesel in the country are currently approximately Rs.75 and Rs.65 per litre, varying from State to State. Imposition of various taxes and cess have more than doubled the retail price, which is being borne by the common consumers while the kitty of the government and oil companies are soaring,” the release stated.

“In January 2013, the [UPA-led] government after fully deregulating petrol prices had authorised oil marketing companies to increase retail prices of diesel by 50 paisa every month to close the gap on their so-called notional under recoveries.

The attempt of the government to show the figures as loss incurred by oil companies has proved to be utterly motivated and false, with balance sheets of oil companies indicating a profit of over Rs. 50,000 crore between 2007 and 2012,” the release stated.