Bihar Developments Put Oil Price Hike Issue On The Backburner

Political developments over the Central Bureau of Investigations (CBI) decision to chargesheet Bihar Chief Minister and Janata Dal (JD) president Laloo Prasad Yadav in the fodder scam have overshadowed the crucial oil price hike issue.

The petroleum ministry is apprehensive that the oil pool deficit may not even figure during the forthcoming meeting of United Fronts (UF) steering committee on July 2.

The political leadership appears to be more concerned about the fall-out of these developments on the survival of the JD government in the state and the UF government at the Centre than the burgeoning oil pool account deficit which has crossed the Rs 16,000-crore mark. Though pressure is mounting on Yadav to resign from the Chief Ministers post, it is being considered unlikely that he would do so, at least before the July 2 steering committee meeting. Yadavs continuation as Chief Minister can have serious implications. For one, in case he is arrested by the CBI, it could lead to law and order problem in the state.

 

Alternatively, if there is a split in the state JD, the government in the state may fall, necessitating fresh political activity in Bihar.

Moreover, a rejuvenated Congress under the leadership of Sitaram Kesri may also try to get political mileage out of these events and force a political realignment at the Centre in a manner that it forms a government with the support of at least some of the UF constitutents.

Officials say that in all these events, the Central UF leadership will have to be extra vigilant. In such circumstances, when the very survival of the government is at stake, it is unlikely that anyone among the top UF leaders will have time, or desire, to look into the oil pool deficit issue, the officials point out.

It is also pointed out that earlier, the oil pool deficit issue has been ignored by the steering committee for far lesser important issues like selection of presidential candidate. The July 2 meeting was to be the fourth in the series to resolve the vexed problem. Once again, it looks unlikley that the government would take an unpopular decision like the petrol price hike at a time when it is facing an uncertain future.