Left says no to fuel price hike; government rules out fuel rationing

23 May 2008

The Left allies of the ruling UPA government at the centre has vowed to oppose any move to raise petrol and diesel prices to reduce losses at state oil firms hit by soaring prices of crude oil.

"The UPA government should realise that it will have to face the wrath of the people suffering due to price rise and the deterioration in their living standards," the parties said in a statement after meeting with the coalition.

The government should have restructured the excise and customs duty regime on crude oil and petrol products, Prakash Karat of the Communist Party of India (Marxist) said.

"We have given the proposals to the UPA government for the last three years. They should accept our proposals instead of going for a hike." he said.

Petroleum secretary MS Srinivasan today said a price hike was inevitable despite fears of it fuelling inflationary pressures. Oil minister Murli Deora had also hinted at immediate steps to save oil firms.

The minister, however, refuted plans of rationing fuel. "There is absolutely no move to restrict or ration supplies of any fuel," Deora said.