Press Statement

The Polit Bureau of the Communist Party of India (Marxist) has issued the following statement:

No Hike In Petroleum Prices

A misleading report has appeared in The Times of India dated May 19, 2005 which gives an erroneous impression as if the Left Parties are open to a revision of diesel and petrol prices. The Polit Bureau of the CPI(M) reiterates that the reported price hike in petrol and diesel is avoidable as elucidated in the note submitted to the Petroleum Ministry, i.e., a) cancelling of proposed cess of 50 paise per litre for highways, b) change in excise duty so that it does not lead to retail price hike, c) doing away with import parity in product price, d) formation of price stabilisation fund to meet the fluctuation of global crude price with the cess collected on indigenous crude amounting to Rs. 5400 crore per annum, and e) review of duty draw back payment to exporters of petroleum products by private refineries.

In the meeting with Finance Minister and Petroleum Minister on May 16, 2005, the above points were explained by the leaders of the Left Parties. In the light of these discussions, the government should not consider any price hike in petroleum products at present.