The government on Saturday remained adamant on the hike in petrol prices at a time when political parties, cutting across ideologies, came together to oppose it. On the other hand the ruling Congress virtually asked the government to provide relief to the 'aam aadmi'.
“The party is concerned about the rise in prices. All possible steps required to give relief to the people should be taken. This is the party’s suggestion. This is for the government to consider, give serious thought to and take all possible steps,” AICC general secretary Janardhan Dwivedi said.
Dwivedi, who refused to give a specific answer when asked whether the party wants the government to review the decision to deregulate petrol prices, said, “Any policy which does not give the desired result, or is not good for the people, can be revisited.”
Prime Minister Manmohan Singh had on Friday told journalists in Cannes that these are “very sensitive areas and I have no hesitation in saying that ultimately we must allow the markets to find their own level except for those commodities which are semi-public goods... So, the direction of change is quite clear. We must move in the direction of decontrolling more and more prices.”
In Kolkata, Union finance minister Pranab Mukherjee took pains to explain that the oil companies, and not the government, had increased the petrol price. “Oil marketing companies have given adequate reasons why they had to do it because they import crude petroleum products for us.
Combined losses for BPCL and HPCL for the first six months, April to September, is Rs 12,000 crore, and IOC is also likely to be in the red. If the oil companies are in the red, will they be able to raise resources from the market? Would they be in a position to import crude oil,” he asked.
Mukherjee also tried to downplay the threats issued by key UPA ally Trinamul Congress, saying their concerns were “quite legitimate”.
Expressing hope that the issue would be resolved once the TMC MPs met the PM, Mukherjee said the decision to decontrol petroleum prices was taken in a Cabinet meeting at which all allies, including the Trinamul, were present.
Describing the Trinamul as a “valued partner”, Mr Mukherjee said he learnt of its grievances from media reports. “It is quite legitimate for any political party which is a constituent unit of the UPA to express their concerns and to discuss them with the PM. They have done exactly that and I do not find anything wrong in it,” he added.
A Union minister in Delhi, on condition of anonymity, said, “She (Trinamul chief Mamata Banerjee) is a compulsive populist. When we have allies like them we don’t need the Opposition BJP.”