The Communist Party of India (Marxist) has strongly opposed the government's decision to increase the price of gas produced by public sector companies. The motivation was to cater to the interests of the Reliance India Limited (RIL), the party said in a statement.
“The doubling of the gas price comes at a time when the country is witnessing high inflation and price rise. The benefits accruing to one corporate group seems more important for the government than public interest,” the party said.
The aim was to ensure the market for the RIL's gas. The lower priced gas of the public sector enterprises would have been more attractive for power and fertilizer producers. This doubling of the price in the Administered Price Mechanism was done to bring it in line with the price approved by the government for the gas produced by RIL, the statement said.
ADVERTISEMENT
By this step, the additional burden of Rs. 8,000 crore would be passed on to the consumers of power and fertilizers. The transport industry using the CNG would also be affected, it added.