Agp Opposes Move To Hike Fuel Prices

The Asom Gana Parishad (AGP) has strongly opposed the United Front governments proposed move to hike the prices of petroleum products. It blames the Union finance ministry squarely for the deficit in the oil pool account.

In a detailed document on the subject, the AGP a constituent of the United Front says the deficit needs to be met by corrective measures and not by effecting a hike in prices.

Why should the consumer be made to pay for the wrongful actions of the Union finance ministry.

The ministry has not spared any opportunity of utilising the funds of oil industry for purposes other than those related to the industry, the document states.

The party suggests measures to wipe out the deficit:

The amount diverted from the pool account as government revenue should be returned to the OCC. The interest on the public deposit account of the OCC written off unilaterally by the ministry should be given,

This should be accompanied by suitable reduction in import duties and changing the ad valorem duties structure to specific duties,

The cess levied on indigenous crude oil production should be used for the development of the oil industry only instead of being used as revenue of the Union finance ministry; or else, it should be done away with,

The AGP wants that oil royalty to oil-producing states like Assam should be at a realistic level, and contends that no hike is required to raise the royalty.

There is a gross inequity in sharing of oil-based revenue between the Centre and the oil-producing states. The cumulative earning of Assam and Gujarat from oil was about Rs 4,300 crore as against the Centres earning of Rs 48,000 crore during the last decade. The sharing of oil-based revenue must be placed on an equitable footing without any further delay, the document states.

The crude oil produced should be priced at a level corresponding to its price in the international market for the purpose of calculating royalty, the AGP demands.