Price of Brent crude, the global oil price benchmark has fallen below $92 a barrel. It is reported that the OMCs are earning Rs. 1.90 on every litre of diesel as `over recovery’. While the government had directed OMCs to increase 50 paise per litre every month from January 2013, no reduction has been done in diesel price despite the fall in crude oil prices. Through this inaction, government is burdening the people in general and especially the farmers, small scale industries and the goods transport sector.
This withdrawal of subsidy for the supply of diesel to bulk consumers will cripple the public transportation system at a time when the necessity is for strengthening the public transportation system. The sharp increase in private vehicles and traffic is causing rising pollution and a major environmental problem. The only way out is to restrict the expansion of private vehicle and to strengthen public transport.
Decontrol of Diesel Prices
The Central Committee condemned the decision of the UPA government to decontrol diesel prices. This will lead to continuous increase in the prices of diesel just as it happened with the prices of petrol after deregulation. The rise in the prices of diesel will impact on transport and increase inflation. It will also affect farmers adversely. The UPA government is adamant about further burdening the people who are already suffering from ever increasing price rise of all essential commodities.