Minutes after the Government took the unpopular decision of raising the diesel price and capping the number of subsidised domestic LPG cylinders available to six, political leaders across parties, voiced their dissent against the move.
Mamata Banerjee, West Bengal Chief Minister and Trinamool Congress chief, sought a roll back. She said: “The matter is very serious and sensitive. We will discuss in our party meeting and our plan of action.”
Yashwant Sinha, former finance minister and BJP leader: “This is going to cause undue hardship.”
Akhilesh Yadav, Uttar Pradesh Chief Minister and Samajwadi Party leader: “It will hurt the common man. Gurudas Dasgupta, CPI leader: We will protest in every way we can.”
From the industry side:
CII Director-General Mr Chandrajit Banerjee on the price hike:
“The decision of the government to hike diesel prices and LPG are borne out of necessity. CII fully understands the economic compulsions for such a decision. Rationalisation of fuel subsidies is a necessity from the point of fiscal consolidation and therefore, CII congratulates the Government on this bold decision.”
Pravin Shah, Chief Executive, Mahindra Automotive said that the diesel price hike had been much awaited since the petrol prices had been already increased. “I don't think it will have an impact on demand. There are other things such as high interest rates affecting demand more.” Over 95 per cent of Mahindra's sales account for diesel vehicles.
Sugato Sen, Senior Director at SIAM said that the increase should have been in shorter spells of Rs 1 to 2 so that customers could have absorbed it better
Keywords: political leaders' reactions on diesel price hike, India Inc reactions on diesel price hike, subsidised domestic LPG cylinders, SIAM, Mamata Banerjee, Mahindra Automotive, domestic LPG cylinders supply restricts to six, six LPG cylinders
Comments:
(1) Instead of opposing every price increase, political parties BJP, SP, DMK, AIADMK, and in particular Ms Mamata Banerjee should demand a review of taxation policy in respect of all petroleum products. Central government and State governments have both to do this exercise of review on a top priority basis. (2) Considering the bulging oil imports and scarce foreign exchange, it is not an easy thing to avoid price increases (3) It is simply not wise to de-link prices of petroleum products from international crude price. On the contrary, it is necessary to control consumption of petroleum products. (4) How to control consumption and how to pay for rising imports of crude is a matter for all parties to debate and decide. (5) A taxation policy based on study of impact of increase of prices of such products on inflation, need for revenue generation and containing rising crude imports bill is need of the day.
Political leaders are acting irresponsibly, trying to play to the vote banks. Almost all sections' earning power has increased and prices of every item that is supplied by the private sector can go up without anyone even bothering. The price of common medicines and schooling is an example. Mamata Banerjee has to complain against everything. Her one agitation at Singur has set off a country-wide anti-land acquisition movement. This one act will cut growth, delay investment and cause more pain to more Indians than the labour instrangency encouraged by the Reds did.
Please Email the Editor