Petrol price hike management by Congress bombs

Petrol price hike management by Congress bombs

BS Reporter / New Delhi June 16, 2008, 17:54 IST

On June 5, the day after the UPA government hiked the fuel prices and Prime Minister Manmohan Singh appeared on Doordarshan to justify the decision. A cabinet meeting was held immediately after. The idea to congratulate the PM for his TV speech was mooted, interestingly, by the UPA allies. Consequently a resolution was passed in the cabinet.
 
This best illustrates the lack of enthusiasm of the Congress in hitting out at its rivals on the oil price rise at a time when the Wholesale Price Index-based inflation shows no signs of coming down. It was the allies who earlier, had prevented the Congress from undertaking economic reform including disinvestment of public sector undertakings like Nalco and Neyveli Lignites. This time, even as the allies  stood by the prime minister and the finance minister on their decision to hike oil prices, the Congress, knowing full well price rise is the biggest political issue now appeared to adopt a sickly defence of the government, creating a wholly new dimension of coalition politics.
 
Congress spokesperson Manish Tiwari did come out with a 'heavy heart' and a list to show that during the NDA regime, domestic oil prices were revised upwards several times and these increases had nothing to do with the global price of oil. But  for the most part, the Congress machinery sought other stratagem to divert attention