Left Wants Alternatives To Petroleum Price Hike Probed

The Left parties want the government to look at other alternatives to bridge the oil pool deficit account rather than steeply hike the prices of petroleum products.

Although Left leaders admit that a hike in petroleum products prices is inevitable, they want the government to have a proper consultation before announcing any hike, so that the quantum of the hike can be discussed.

They say they do not want any hike in the prices of kerosene and diesel at all, but are prepared to accept a minimal hike with regard to petrol, if the government explores the other possibilities too. They are likely to submit a list of suggestions at the next meeting of the United Front steering committee.

Their suggestions include rationalising the price of natural gas supplied to non-priority industries and bringing natural gas into the oil pool account, taxing luxury cars to stop increase in their numbers, taxing families with more than one car and strengthening the public transport system.

Left leaders say that the price of natural gas has remained Rs 2,470 per thousand cubic metre since 1990, which is lower by 60 per cent than the existing price in countries which are net importers of petroleum products. An increase of Rs 1,000 per thousand cubic metre will fetch an additional Rs 2,000 crore and a more rational price structure can save upto Rs 7,000 crore every year, CPI secretary D Raja estimates.He says that while in north and west India, non-priority industries such as glass and ceramics use natural gas as fuel at a highly subsidised rate, the same industries in the south and east use LPG.

Why should such discrimination exist across the country? Why should natural gas be given to non-priority units at a subsidised rate when it was intended to be supplied to priority sectors such as fertiliser units, Raja asks.

He also demands that natural gas should be classified as a petroleum product and hence brought into the oil pool account. CPI(M) politbureau members Sitaram Yechury and S Ramachandran Pillai emphasise that the government should try and strengthen public transport and put a curb on the number of private vehicles.

They suggest that there should be a cess of luxury cars. They want the government to focus more on power generation so that a substantial amount of diesel consumption through private generators can be saved.

CPI general secretary AB Bardhan goes to the extent of saying that We should impose a limit on the production and import of cars, except for use of public transport and service.

They point out that Prime Minister IK Gujral, in his capacity as the external affairs minister in the Gowda government, had suggested dual pricing of petrol at one of the meetings of the UF steering committee. He had suggested that there should be a different price for cabs and private cars. The suggestion was then turned down on the plea of technical difficulties.