Uf Panel Puts Off Decision On Petrogoods Price Rise

The United Front steering committees meeting yesterday once again put off a decision on the contentious issue of raising petroleum product prices. The committee will meet again on June 27; senior leaders ruled out a hike until that day.

The Left parties did not take a strong stand against the move to raise prices at yesterdays meeting. However, CPI(M) leader Sitaram Yechury reiterated his partys known position on the issue. The prime minister, finance minister and cabinet secretary, among others, have made it clear that the price rise will have to be effected at some point.

This was the third meeting of the steering committee at which a decision on the issue has been put off. A senior front leader said the issue could not be postponed beyond the June 27 meeting. It will need detailed discussion on the various permutations of price increases and duty cuts.

 

United Front spokesman S Jaipal Reddy said a decison on oil prices could not be taken for two reasons: most of the time was taken by the discussion on the Fronts presidential candidate and a lack of time to deliberate on the various views put forth by constituent parties (mainly the Left parties).

Union finance minister P Chidambaram told members of the committee to arrive at a decision on the oil prices either way, at the earliest. Front sources said a decision on the contentious issue would take at least seven to eight hours of deliberations; accordingly, the June 27 meeting has been scheduled to begin at 10 am.

Reddy said there was little discussion on the issue and the consensus was that it should be put off to a later date so that yesterdays meeting could deliberate on the more pressing issue of deciding on the Front choice for the presidential election. In any case, members were keen on less discussion on this issue in order to avoid speculation and hoarding.

Left leaders, particularly Sitaram Yechury, have argued strenuously against any move to raise the prices, insisting on finding alternative ways of meeting the deficit in the oil pool account. Recent estimates put the deficit at Rs 16,000 crore.

Although the Left parties are bound to agitate strongly against any increase, they are unlikely to bring down the government over this issue.

Senior officials argued that an imminent increase in prices would normally not be announced in any case, for fear of hoarding. Therefore, the government could make a surprise announcement over the next few days.