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Rediff News  All News  » Business » Left union flays petrol price hike plan

Left union flays petrol price hike plan

August 12, 2008 17:16 IST

The Left-leaning trade union CITU on Tuesday condemned the high-powered B K Chaturvedi Committee's call for raising fuel prices every month till they are in line with costs saying the panels' report should be outrightly rejected.

Centre of Indian Trade Unions demanded that instead of raising prices, the government should levy a windfall profit tax (WPT) on oil producers and private refiners like Reliance.

The Committee "has given outrageous recommendations for further price rise in petroleum products based on another notional basis of pricing," CITU said in a statement.

No notional pricing formula without linkage with the actual cost of production would be acceptable to the working class, it said. Pricing of petroleum products should be based on actual crude oil price, actual refining cost, marketing cost and a reasonable profit.

"CITU demands that government should immediately reduce the enhanced price of diesel, LPG and petrol in light of the fall in global crude prices," the statement said.

The union sought imposition of a flat super profit tax beyond $50 per barrel price on crude oil producers in both public and private sector and a windfall profit tax be levied on private refiners like Reliance and Essar on refining margins exceeding $8 per barrel.

"CITU denounces the discriminatory approach of the Committee in dealing with public sector and private sector oil companies in its report," it said.

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