Allies slam petrol price hike, a roll back possible
As government came under attack from allies and opposition alike on the stiff hike in petrol price, the Kerala High Court today asked oil companies to produce their balance sheet and quarterly reports before it.
Pressure also mounted on the government to roll back the hike with crucial ally Trinamool Congress threatening a pull out on the issue and other allies seeking reconsideration of the decision.
Indications emerged that the government could consider a partial roll back of the Rs. 1.80 hike effected yesterday in petrol price with ruling party sources saying such a decision could be taken once Prime Minister Manmohan Singh returns from the G-20 Summit in France.
In an unusual order, the Kerala High Court directed Indian Oil and Reliance Petroleum to produce their balance sheets and quarterly reports in three weeks observing that in the last one year there has been at least 40 per cent hike in petroleum products.
A division bench comprising acting Chief Justice C.N. Ramachandran Nair and Justice P.S. Gopinathan said frequent price hike has caused immense hardship to the common man.
"Political parties are making protests. There is no no consumer resistance. They are getting adjusted to frequent hikes. We are concerned about the price hike.
Ignoring state government counsel's stand that the PIL by former MP P.C. Thomas was politically motivated, the Court said politics involves public interest and admitted the petition.
Putting pressure on the government, the Trinamool Congress, the second largest constituent of the UPA with 18 MPs, held an emergency meeting of its Parliamentary Party its after which Chief Minister Mamata Banerjee said leaders favoured withdrawal of support but she has stayed such a move.
"Our withdrawal of support may result in fall of the government. But since the Prime Minister is away, we want to discuss with him and have sought an appointment with him," she said.
Banerjee said Congress was dependent on the support of allies like the Trinamool Congress, NCP and DMK to run the government but the allies have been silenced and not not heard in the Cabinet.
Allies like NCP and National Conference also expressed their discomfort with the petrol price hike and sought a reconsideration of the decision.
Even as allies mounted pressure, the oil marketing companies ruled out a roll back of their yesterday's decision but said they would cut the rate if government gives them a directive.
Congress sources indicated that a 'partial rollback' of the hike hike could happen in the next few days after Prime Minister Manmohan Singh's return from G-20 summit in France.
A senior party leader, speaking on the condition of anonymity, said the allies would be consulted after Prime Minister's return.
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