New Delhi: Just a day after the Congress-led United Progressive Alliance Government completed three years in office, it dealt a major blow to the common man by the sharpest ever increase in petrol price. The state-owned oil companies decided to raise petrol price by Rs 6.28 per litre excluding local sales tax or VAT. After the addition of taxes the hike translates into Rs 7.50 per litre in Delhi.
With the rupee in a tailspin against the US dollar, the hike was expected but the steepness stunned even the UPA constituents with Trinamool Congress supremo and West Bengal Chief Minister Mamata Banerjee accusing the Congress of economic mismanagement and keeping its allies in the dark.
The Opposition led by the Bharatiya Janata Party (BJP) and the Left Front, too, came down heavily on the government for the price hike. While the BJP alleged that the Centre was a cheating the public, the Left parties called the petrol price hike a disastrous decision.
Key UPA allies, Trinamool Congress and DMK also hit out at the government over the steep price hike.
TMC supremo and West Bengal Chief Minister Mamata Banerjee said that the decision was taken without consulting her. "We cannot accept the petrol price hike. It is unjust and unilateral. It was done without our knowledge," she said.
She, however, said that her party was not walking out of the UPA as yet.
"We have made a commitment to support this government, and that is the reason we are not moving out. But our support does not mean that we cannot protest. We believe that the government is being unjust, it's one-sided and not correct," said the West Bengal Chief Minister.
Another key ally, DMK chief M Karunanidhi also said that he was never consulted on the issue, adding that party MPs would take up the matter with the government.
He added, "These are issues that cannot be discussed in an alliance. These are decisions that are taken momentarily depending on the situation."
Samajwadi Party, whose chief Mulayam Singh Yadav was the focus of Congress-led government's celebrations on Tuesday, also slammed the hike as a "gift" to the common man on completion of three years in power. "We demand immediate rollback of petrol price hike. The decision is anti-people," SP spokesman Rajendra Chowdhury said.
Terming the steep hike in petrol price as "unreasonable", BJP warned of a political agitation if it is not withdrawn. "We condemn the petrol price hike and seek its rollback. We will not allow it to happen. A strong democratic agitation is on the cards," BJP's spokesperson Prakash Javadekar said.
Congress, however, steered clear of the issue saying that petrol companies are independent into the matter after the deregulation of petrol prices. Party spokesperson Rashid Alvi at the same time said, "it is a very difficult decision".
State-owned oil companies decided to raise petrol price by Rs 6.28 per litre excluding local sales tax or VAT. The hike translates into Rs 7.50 per litre in Delhi and is the steepest ever. Petrol in Delhi currently costs Rs 65.64 a litre and after the increase it will be priced at Rs 73.14 per litre. Oil companies had already told the government that wanted to hike petrol price by at least Rs 4 per litre.
Earlier on Tuesday, Petroleum Minister S Jaipal Reddy had said that there was an immediate need to raise fuel prices, but refused to say when the hike would actually take place.
The government had decontrolled petrol price in June 2010 but rates were last increased on November 4 last year. This despite oil price rising by 14 per cent and 7 per cent fall in value of rupee against the US dollar.
Price of diesel, kerosene and cooking gas were raised in June 2011. State-owned oil firms, who had in the fiscal ending March 31, 2012 lost Rs 4,860 crore on petrol sales, are currently losing Rs 6.28 per litre on petrol.
Here are the rates of petrol in four major metros after the hike:
Petrol in Delhi currently costs Rs 65.64 a litre and after the increase it will be priced at Rs 73.14 per litre.
In Mumbai, the petrol now costs Rs 70.66 but after midnight it will go up to rs 78.16.
Kolkata too faces the pressure with the petrol now costing Rs 77.53 from Rs 70.03.
Similarly, the cost of petrol in Chennai will see a steep hike of Rs 7.50 to 77.05 from Rs 69.55.
(With Additional Inputs from PTI)
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