Govt's diesel deregulation move wrong: Karunanidhi

Says govt should raise subsidised LPG cap to 12

Disapproving the Centre's diesel deregulation move, UPA key ally DMK today demanded that the government reconsider it and raise the subsidised LPG cylinder cap to 12 from the proposed nine, asking it not to invite the wrath of the poor on cooking gas.

"Allowing State-owned oil companies to increase diesel prices even by a small quantum is a wrong decision", DMK chief M Karunanidhi said in a statement, a day after government partially deregulated diesel price allowing a hike of 40-50 paise a litre every month.

He said poor and the middle class people would not be able to bear even the increase of 50 paise per litre in diesel and this would pave the way for increase in inflation.

"The Centre should reconsider the decision on the diesel price issue so that poor and the middle class are not affected", he said, reminding that the diesel price was hiked by Rs 5.63 per litre in September last.

On the announcement to raise the cap on subsidised cooking gas cylinders from six to nine a year, Karunanidhi said the Parliamentary committee had already recommended that it should be increased to 12 a year.

Observing that LPG is primarily used by the poor and middle class, Karunanidhi said "the Government has to give a cylinder at subsidised rate every month. Though it will cost additional burden, government should bear them so as not to attract the wrath of the poor."

"Government should reconsider the decision to give nine LPG cylinders only. It should come forward to give one cylinder a month," he added.