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Congress botches fuel price hike defence
BS Reporter / New Delhi June 17, 2008, 0:35 IST

Congress botches fuel price hike defence
BS Reporter / New Delhi Jun 17, 2008, 00:35 IST

This best illustrates the lack of enthusiasm of the Congress in hitting out at its rivals on the oil price rise at a time when the Wholesale Price Index-based inflation shows no signs of coming down. It were the allies who earlier had prevented the Congress from undertaking economic reforms, including disinvestment of public sector undertakings like Nalco and Neyveli Lignites.

This time, even as the allies stood by the PM and the finance minister solidly on their decision to hike oil prices, the Congress, knowing fully well the price rise is the biggest political issue, now appeared to adopt a sickly defence of the government, creating a wholly new dimension of coalition politics.

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Congress spokesperson Manish Tiwari did come out with a "heavy heart" and a list to show that during the NDA regime, domestic oil prices were revised upwards several times and these increases had nothing to do with the global price of oil. But for the most part, the Congress machinery sought other stratagem to divert attention — the creation of committees being one of them.

AICC media chief Veerappa Moily suddenly called journalists to tell them that the "future challenges group" was ready with a report for the Congress president on how to rejuvenate the party. One of the thrust areas of this report was to form a strong cadre-base for the party to work at the grassroots level throughout the year.

If Moily's grand revival plan was not enough, the spin doctors focused on another committee, this time headed by Defence Minister A K Antony, which would suggest ways and means to win the next round of Assembly elections (scheduled in the later part of this year).

The party failed to explain how it was going to address immediate problems — no well-planned campaign to highlight how global prices had soared. It could not highlight that during NDA's tenure, crude prices went up to $36.25 per barrel from $12.50 per barrel, with total increase of just $23.75. But the UPA had faced a 411 per cent hike as the crude prices hit the $139-mark in June. Even so, the NDA increased petrol prices 21 times and diesel 24 times and did not even spare kerosene.

During the NDA tenure, the price of cooking gas or LPG cylinders was increased by Rs 109.60 in a span of five years. In the UPA period, in four years, the total increase has been Rs 83.15. This data were just a part of a routine press meet by Tiwari and never got echoed in a campaign drive.

The Congress had been particularly afraid to take on the Left parties on the issue of price rise. The Left — mainly the CPI(M) — had been consistently hitting the government on the issue of price rise.

Among all the opponents of the Congress on this issue, the CPI(M)-led Left bloc has maintained a steady stand with a set of alternative proposals on how to combat the price rise without raising the oil prices. Although the CPI(M) never lost any opportunity to air its alternative ideas, the Congress never logically countered this.

The ruling party never repeatedly pointed out, except once or twice by the finance minister, that many countries in the world were facing higher rates of inflation and India was better positioned to tackle it. Till date, no Congress leader has spoken out to reassure its voters that this is the party which has tackled inflation of 15-16 per cent in the past.

Even in February, the oil prices were hiked after a lot of dilly-dallying. While the PM, FM and the external affairs minister were convinced that a hike was absolutely necessary, others feared a popular backlash. This time too, the Congress, after losing the Karnataka polls, was skeptical about the feedback from its 'aam adami' vote bank.

A former petroleum minister aptly described the plight of the Congress. In an informal gathering, he said that if he had been in Murli Deora's shoes, he would have hiked prices much earlier. And before the next round of elections, the price hike issue would have fizzled out.

The Congress propaganda machinery simply could not take this risk and left its PM lonely and undefended in this hour of crisis.

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