Uf Steering Panel To Leave Oil Price Hike Decision To Govt

Today's meeting of the United Front steering committee is likely to pave the way for the government to raise the prices of petroleum products by leaving a decision on the contentious issue to the government.

Most Front leaders yesterday felt that the government could not afford to delay a decision on the issue. The Left is expected to continue to oppose a petroproducts price hike at the meeting. However, in private conversations, the Left leaders accepted the inevitability of the hike. Therefore, they are expected to look the other way while the Union cabinet takes a decision on the price hike. Such a strategy would have the added advantage of letting the Left retain the option of later criticising the price hike.

 

Front sources said the government might not touch the prices of petrol and kerosene and instead opt for a hike in the prices of cooking gas and diesel. Petrol is already selling at almost double the international price. Kerosene, which is known as the poor man's fuel, is politically sensitive.

New petroleum minister Janeshwar Mishra had not received any invitation to attend today's steering committee till late yesterday. His deputy, T R Baalu, was invited to present the ministry's proposal at the previous steering panel meet.

During the last steering committee meeting, Prime Minister I K Gujral had said he would also seek the views of the UF Chief Ministers on the issue. Apart from the Left parties, only the DMK has opposed the proposal so far.

Left leaders are firm that there should be no hike and say that the government should consider all the proposals with an open mind. The CPI prepared a note on the issue, detailing its short and long-terms suggestions on finding ways to bridge the oil pool deficit account. The note prepared by party general secretary A B Bardhan and secretary D Raja will be circulated at today's meeting.