Deora says Opposition ‘misleading’ people
While the Opposition geared itself for the all-India bandh called by it on Monday to protest against spiralling prices, Union petroleum minister Murli Deora said that the bandh call was “totally unjustified” as the recent rise in prices has had only a minimal impact on rising prices.
Defending the government which is under attack for rising prices, the minister also maintained that the recent increase in the prices of kerosene and domestic LPG would have just a negligible impact on the common man in a statement issued here on Sunday. Mr Deora also accused the Opposition of “misleading the people”, and added that “these parties have been instrumental in notifying deregulation of the prices of petroleum products and reducing subsidies in November 1997 and in implementing the programme from April 2002.”
The petroleum minister further said that the Rs 3 per litre increase in kerosene actually translates into an increase of merely 50 paise per day per family. As for domestic LPG, the prices of which have been increased by Rs 35 per cylinder, the minister noted that it meant an increase of less than a rupee per day per family.
Regarding the Rs 3.50 per litre hike in petroleum prices, the minister said that this was due to the recent decontrol of petrol prices. In the case of diesel, Mr Deora said that public sector oil marketing companies (OMCs) had increased its prices by only Rs 2 per litre and were still shouldering the under recovery of over Rs 1.50 per litre for the sake of consumers. The minister also pointed out that even though the international prices of crude touched an all-time high of $142 per barrel in July 2008, the UPA government had not passed on the burden to consumers. In the process, he said that the government and public sector OMCs had to shoulder under recoveries of over one lakh crore rupees.
He further said that the as soon as these prices came down, the government petrol and diesel prices to December 2008 and January 2009. Moreover, Mr Deora said that even after the recent hike, the government and OMCs will have to bear under recoveries to the tune of Rs 53,000 crores during 2010-2011.
Stating that the contribution to the state exchequer from taxes on petroleum products is the highest, Mr Deora has also directed the states to rationalise the incremental increase in the revenue owing to the recent increase in their prices so that it benefits consumers. He specifically pointed out that in the case of Bihar, the government is levying a VAT of 12.5 % on PDS kerosene, thereby increasing the burden on the common man.
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