New Delhi, January 18: Trouble for the Congress is brewing up, as many of its UPA allies are distancing themselves from the party over its decision to hike fuel prices. While Mamata Banerjee has said the TMC was not consulted before the hike, the NCP is demanding a roll back. The Trinamool Congress (TMC) is feeling the heat the fuel price hike could have on the summer elections in the state.
The second largest constituent in the UPA is saying “it wasnt me” – laying the blame on the Congress doorstep.”We are never consulted before price hike, we are opposed to it but state government is equally to be blamed. Every time there is a hike in fuel prices it’s better for the left front government since thet earn the most in VATs and taxes, want to know where the money is going?” said TMC leader Sudip Bandyopadhyay.
It’s not just the Trinamool alone. Another congress ally NCP, whose resentment Congress faced over Rahul Gandhi’s reported comments on food inflation, is now demanding a roll back.
Interestingly, both allies were party to the government’s decision to decontrol the price of petrol, a move that has resulted in successive price hikes. Jayalalithaa is also protesting the fuel price hike with an eye on elections in Tamil Nadu. UPA’s partner DMK is silent for now.
Oil Minsiter Murli Deora is trying his best to douse the oil fire. Speaking to CNN-IBN, he said that “oil companies have no choice.”
Has has sought a meeting with finance minister Pranab Mukherjee on Tuesday and will request him to abolish the import and excise duty on oil and oil products which were levied in the last budget to ease the pressure. This will ensure that consumers don’t have to bear the burden of another oil shocker.
The oil companies are navratnas and are making huge losses and cannot be allowed to bleed. Mamata Banerjee and Trinamool were also part of the decision taken for the decontrol of oil prices.
With assembly elections due in five states, the government is keenly aware of the cascading effect a fuel price hike will have on inflation, but with crude having crossed $95 a barrel and the politically sensitive diesel accounting for 40% of oil companies sales it could further push the navratnas in the red. The government is confronted with that familiar question: Is good economics, good politics?
—-Agencies