UPA under fire from key allies for petrol price hike

The United Progressive Alliance (UPA) government's decision to hike petrol prices has been criticised not just by opposition parties, but even key allies of the Congress, who have demanded a roll-back in the increase.

The Trinamool Congress (TC), the Dravida Munnetra Kazhigham (DMK) and the Nationalist Congress Party (NCP) have been vocal in opposing the price hike. In fact, stiff opposition from these key allies forced the government to postpone a decision to reduce the subsidy on liquefied petroleum gas (LPG) by introducing a ceiling on subsidised cylinders.

''We want a roll-back of the petrol price hike,'' demanded Dinesh Trivedi, a TC leader and railway minister. Trivedi claimed that his party was not consulted by the government before going in for a price hike.

According to DMK spokesperson T K S Elangovan, the hike will hurt the middle-classes and the poor alike. ''It will have a cascading effect and the common man will be put to enormous hardship,'' he said.

The NCP's D P Tripathi pointed out that the petrol price hike would lead to a rise in the price of other commodities.

An empowered group of ministers (EGoM) was to have met on Friday to decide on a task force proposal that a household should enjoy subsidised LPG to the extent of four to six cylinders in a year. For any additional requirements, the consumer would have to pay market price – which could mean Rs700 a cylinder, as against about Rs400 at present.