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Maya, Karunanidhi urge govt to reconsider decision to let oil firms hike diesel price

CNN-IBN
Jan 18, 2013 at 12:51pm IST

Lucknow: The government came under attack from its allies over the decision to partially deregulate diesel price. Bahujan Samaj Party chief Mayawati called the decision anti-people and said the government was only thinking about the rich and not the poor. "This will lead to further price rise of commodities. The government should reconsider its decision," Mayawati said.

DMK chief Karunanidhi also demanded that the government reconsiders its decision on diesel price. "The Centre should reconsider its decision. The decision of giving the oil companies the authority to increase price is wrong. The steady increase will affect poor and middle class and will have a cascading effect," Karunanidhi said in a statement.

ALSO SEE Diesel prices up by 45 paise per litre from today, to be raised by 50 paise per litre every month

The two also asked the Centre to further raise the cap on subsidised LPG cylinders from 9 to 12 saying raising the cap to nine was not enough. "The cap on cylinders should be raised to 12, I urge the government to consider it," Karunanidhi said. "The central government should at least give 12 gas cylinders on subsidised rates. The government is adamant to weaken the economy," Mayawati added.

Maya, Karuna urge govt to reconsider decision on diesel price

The two also asked the Centre to further raise the cap on subsidised LPG cylinders from 9 to 12.

This comes a day after the government took the first major step towards the deregulation of diesel prices saying oil companies will be allowed to decide the prices and hike the prices in small amounts from time to time.

Oil companies have raised diesel prices by 45 paise per litre after a go ahead from the Centre. Sources say up to 50 paise hike will take place every month. This amounts to nearly Rs 6 every year. Oil firms will be selling diesel to bulk buyers at market rates. The new prices will be effective from Friday.

The Cabinet also approved the Petroleum Ministry's proposal to increase the number of subsidised LPG cylinders available to households to nine a year from the current cap of six.

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