Jayalalithaa flays increase in fuel prices

Slamming the latest increase in fuel prices, Tamil Nadu Chief Minister J Jayalalithaa on Thursday once again pressed for revising the price fixation mechanism for petrol and diesel.

"I have often pointed out that determining prices of petrol and diesel based on international fuel rates is not right," she said in a statement here, and sought rollback of the hike.

"Such a price fixation mechanism paves the way for oil marketing companies making profit," she said, adding, in the past the government had not completely passed on the benefit of fall in oil prices on consumers by revising excise duty.

Opposing the latest hike, Jayalalithaa reiterated that fuel prices should be based on factors such as cost of imported crude and its refining.

Effecting the latest revision citing global trends was "not right", she said.

The hike will result in increase in prices of goods which will "severely impact" the poor and middle classes, she said.