Withdraw power given to OMCs, says Jayalalithaa

Also asks Centre to withdraw petrol price hike

Incensed by the frequent increase in petrol prices, Tamil Nadu Chief Minister J Jayalalithaa asked the Centre to withdraw the power given to oil marketing companies (OMCs) to decide the price of fuel.

Reacting sharply to oil marketing companies' (OMCs) decision to increase petrol prices by Rs 1.55 a litre, excluding local sales tax or value added tax (VAT), with effect from Sunday midnight, she accused the OMCs of being profit mongers.

Terming the frequent revision of petrol price hike as “unjust”, she said the price hike will increase the cost of all basic items and will further hurt the economy.

“Increasing petrol prices twice a month is unjust and the government should think how people can tolerate petrol price hike 24 times a year,” she said in a statement.

The Tamil Nadu CM pointed out this would affect a large section of the society, including people in rural areas as well as office-goers who are largely dependent on petrol-run two wheelers.

She said the United Progressive Alliance government at Centre led by Congress is acting against the interests of the common man.

“A good government is one that is aware of the people’s livelihood and economy. But the Congress-led central government is working in contradiction to this. I strongly condemn this,” she said. She also charged the Centre with taking no steps to address the issue of falling value of Indian rupee against the US dollar. OMCs had ascribed the latest price hike to the rupee depreciation and rising international oil prices.

Sunday’s price rise of the fuel is the fourth since June due to depreciation of the rupee against dollar. According to an Indian Oil statement, the recent increase is due to “the combined impact of deteriorating exchange rate and increasing international oil prices”.

It has also hinted at similar hikes in future if the rupee continue to fall and international oil prices go up. “The movement of prices in international oil markets and INR-USD (Indian rupee and US dollar) exchange rate is being closely monitored and developing trends of the market will be reflected in future price change,” said the statement.

After the latest price hike, a litre of petrol costs Rs 70.44 in Delhi, Rs  77.73 in Mumbai, Rs  77.76 in Kolkata and Rs 73.60 in Chennai . The effective price of petrol will vary from city to city, depending on local taxes.