The UPA allies on Saturday joined the Opposition in targeting the government over the hike in the prices of diesel, LPG and kerosene while West Bengal chief minister Mamata Banerjee, whose Trinamul Congress is also an ally of the government at the Centre, waived the state cess on domestic LPG cylinders, making it `16 cheaper for the consumer.

Ms Mamata Banerjee had criticised the price hike on Friday. On Saturday, the Samajwadi Party warned that its outside support to the UPA government has come under a question mark. SP spokesman Mohan Singh, slamming the fuel price hike, said the party’s support to the UPA is under tremendous pressure now from party workers. Mr Singh told reporters that such a government should not continue but also added that the party has its compulsions regarding support to the UPA as there has to be a government at the Centre.
The NCP, another UPA ally, also opposed the decision. “The NCP is against the move as it has mounted hardships on the common man,” Maharashtra deputy chief minister and NCP leader Ajit Pawar said.
The SP said it would take a view on whether or not to attend the all-party meeting called by the Prime Minister on July 3 on the issue of the Lokpal Bill. “We will join hands with the Left, democratic and progressive elements to put pressure on the UPA government to immediately roll back the oil price hike,” said Mr Singh, adding that if the government wants to prolong its life it should stop taking anti-people decisions. He rued the fact that the government does not consult the parties supporting it while taking such decisions.
The cess waiver in West Bengal will result in a `75-crore loss to the state exchequer. The price of each gas cylinder went up by `50 from Friday midnight. But following Ms Banerjee’s decision to withdraw the state cess, consumers in Bengal will pay only `34 extra. “I consulted my finance minister, Dr Amit Mitra, after the midnight decision of the UPA government to hike prices of diesel, LPG and kerosene oil and decided to withdraw cess collected by the state government on each LPG cylinder to give relief to the common people,” the chief minister announced at Writers’ Buildings in Kolkata on Saturday afternoon. A notification to this effect will be issued on Monday.
On Friday evening, Ms Banerjee had voiced her displeasure at the Centre’s price hike decision. “I have already informed Prime Minister Manmohan Singh that we are not supporting the decision. Each gas cylinder, which earlier used to cost `365, will now cost `415 with the hike of `50 per cylinder. The price hike will hit the common people,” she added.
“This decision will result in a loss of `75 crore to the state which we will mop up from other sources of income. But our government does not want to put a heavier burden on the people,” she declared.
Ms Banerjee urged the Centre to lower diesel and kerosene prices. Significantly, her announcement came barely a few hours before the Left Front hit the streets against the hike in fuel prices. She said the Trinamul Congress in the past used to urge the Left Front government to waive the cess but they never took such a measure, which could have given some relief to the people. “The Left Front merely made tall claims. We do what we say,” she added.
Ms Banerjee’s withdrawal of cess took the Left Front by surprise. Congratulating her, senior CPI(M) leader Gautam Deb asked her to join hands with the Left parties in the protest. “You raise your voice from inside the UPA government while we will protest on the street,” he added. CPI general secretary A.B. Bardhan also praised her decision.
The main opposition BJP, meanwhile, accused the government of being “insensitive to the sufferings of the common man”. Leader of the Opposition in Lok Sabha Sushma Swaraj said, “Congress came to power on the slogan Congress ka haath aam aadmi ke saath, but it has become totally insensitive to the sufferings of the common man.” Demanding an immediate rollback, the BJP also held nationwide protests against the fuel hike on Saturday. BJP national spokesperson Shahnawaz Hussain said the decision to hike fuel prices has “exposed the Congress face”. “It would not be an exaggeration if we say it was like imposing economic Emergency on the nation. As if the wounds inflicted by the government through continued price rise were not enough, the latest round of fuel price hikes is like rubbing salt into the wounds of the common people. And terming it ‘nominal’ was like adding more salt to the wounds,” Mr Hussain said.