Fuel prices had to go up: Deora

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New Delhi: The Government's move to hike petrol and diesel prices by Rs 4 and Rs 2 respectively has fuelled a controversy.

The decision has not only hit consumers hard but has also invited the political ire and Left parties and BJP have unanimously condemned the decision.

Defending the move, Petroleum Minister Murli Deora told CNN-IBN that he had no alternative but to raise the prices by a small margin in view of the huge losses being incurred by the Navratna PSUs.

"Our party strongly opposes the Government's decision to hike the oil prices,"
— CPI leader, D Raja.

"Party workers have been asked to hold street demonstrations, sit-ins and road and rail blockades for one day to protest the fuel price hikes,"
— BJP Vice President
Mukhtar Abbas Naqvi

"We had asked the Centre not to go ahead with such an idea but it had ultimately announced price hike of petrol and diesel,"
— Veteran Marxist leader
Jyoti Basu

"The price hike would have a cascading effect on the economy, as the prices of the essential commodities would go up,"
— AIADMK supremo
J Jayalalitha

"The hike would impose an unbearable burden on the people who were already suffering from price rise,"
— CPI-M Polit Bureau
Sitaram Yechury

"We had no choice no alternative but to raise the price of petrol and diesel by a small margin of Rs 4 and Rs 2. We tried our best to even not to go to this extent, but it was the only alternative available,” Deora said.

“If you see our PSUs and our Navratnas they are really bleeding. They have made so much loss and they are making so much loss that it is impossible for them to survive. Now the banks have stopped giving loans to one of our blue chip PSU in the market. They have reduced the credit rating too," he added.

Meanwhile, Left parties and Left backed trade unions have promptly announced a countrywide agitation over the fuel price hike on June 13.

"Our party strongly opposes the Government's decision to hike the oil prices. There is already steep increase in the prices of all essential commodities, this oil price hike will lead to cascading affect, causing enormous burden," said CPI leader, D Raja.

BJP too will launch nationwide protests against the price hike.

The hike in fuel prices is likely to be the first of other tough reform steps the Government will take, despite Opposition from its Left allies.

Petrol price hike

In Delhi, petrol prices have gone from Rs 43.49 per litre to Rs 47.51 per litre.

In Kolkata, petrol will now cost just over Rs 51.

Mumbaikars are going to be the worst hit by the hike. In India's financial hub, one litre of petrol will cost Rs 53.50 paise per litre.

In Chennai petrol will cost close to Rs 52.

Diesel price hike

In Delhi, diesel will now cost Rs 32.47 per litre.

In Kolkata, prices will touch Rs 34.96 per litre.

In Mumbai, it will touch nearly Rs 40.

In Chennai, diesel will cost almost Rs 36.

Talking about the Left parties opposing the move Deora says, “As far as the Left is concern, they are our partners, they have reason to say this but they must also understand that we are trying to protect PSUs. How the PSUs will survive? How much loss they can incur? They are good people, they are committed to the consumers and we are here to protect the consumers.”

“I am very sure that in the coming days my friends in the Left and BJP will understand that this was the only choice we had and they will support us to help the consumer.”

Speaking on LPG and kerosene prices Deora said, “Our plans do not include any thing to increase the LPG and kerosene price. We are trying to see that we do not do this."

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