TN seeks roll back of fuel price hike

Tamil Nadu has urged the central government to withdraw the hike in petrol and diesel prices and also the decision to decontrol diesel.

In a statement, chief minister J Jayalalithaa said, “Considering the difficulties faced by the people in the country due to the increased fuel prices, I strongly urge that the DMK-backed Congress coalition government should withdraw the order allowing oil companies to control the diesel prices and the fresh hike in oil prices.” She added the increase of Rs 1.50 per a litre of petrol and 45 paise for diesel would be a burden for the poor people.

If the oil prices are determined based on the crude oil available in the country and the cost of refining it, or the import price of crude oil and the cost of refining, the prices would have been less for fuel. However, the prices are determined based on the trade parity price, which is derived from the import and export parity prices.

She added that the central government’s oil companies are making crores of rupees as profit every year.