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Rediff.com  » Business » Mamata, CPI(M) slam fuel price hike proposal

Mamata, CPI(M) slam fuel price hike proposal

Source: PTI
February 04, 2010 16:15 IST
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The Trinamool Congress and the Communist Party of India (M) on Thursday opposed the proposed increase in the prices of LPG and other petroleum products recommended by an expert panel headed by former Planning Commission member Kirti Parikh, saying a new burden of raised prices would hit the common people hard.

TC chief Mamata Banerjee said the common people had already been affected too much by the food inflation to withstand a new burden of increased prices.

"There has been an abnormal increase in the prices of essential commodities and I am against a fresh increase in the prices of petroleum products, especially LPG," Banerjee said.

She said there was no need to implement all the recommendations of the Parikh panel.

"Subsidised prices are alright. Subsidy is given by governments in developing countries keeping the interest of common people in mind," she said.

On Wednesday, a prime minister-appointed panel, which included members Finance Secretary Ashok Chawala and Oil Secretary S Sundareshan, submitted a report to Petroleum Minister Murli Deora suggesting freeing petrol and diesel prices and called for raising LPG rates by a steep Rs 100 per cylinder and kerosene by Rs 6 a litre.

CPI(M) opposes Parikh panel proposals

The CPI(M) strongly opposed Parikh commission's recommendation proposing hike in prices of petroleum products and demanded that the Centre should reject it immediately.

"We are absolutely opposed to Parikh panel's recommendation and we ask the Centre to reject the proposal," CPI(M) politburo member Brinda Karat told reporters on the first day of the party's central committee meeting.

A prime minister-appointed expert group, headed by economist Kirit Parikh, had yesterday suggested in its report to free the pricing of petrol and diesel from government control and called for a steep hike in LPG cylinder prices by Rs 100 and kerosene by Rs 6 a litre.

Karat said the recommendation, if accepted, would have a cascading effect on the country's economy.

"We hope that the Centre will have good sense to reject the recommendation. At a time, when the government is prepared to lower prices of Aviation Turbine Fuel (ATF), it is not ready to reduce petroleum prices," she noted.

She said the diesel price hike would have an adverse effect on farmers. "It will also have negative impact on food price. So government should reject the recommendation immediately".

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