Confronted with a recession in the economy which has been compounded by the huge health concern that the Corona pandemic has created, it would have been in the fitness of things if the benefit of the fall in prices were passed on to the already overburdened consumer. This, however cannot be expected from a government which is oblivious to the concerns of the common man and is more concerned in promoting the interests of corporates and its cronies.
The government is earning profits through regular hikes in the duties of petroleum products. When petroleum products were deregulated the country was told by this government that the taxes would be reduced to zero. While the oil companies pay Rs. 25.31 per litre of petrol, people pay Rs. 65.60 for the same litre.
The Polit Bureau of the Communist Party of India (Marxist) strongly condemns the massive hike in the prices of petrol and diesel announced by the Modi government. This will lead to the cascading of the inflationary spiral imposing unprecedented burdens on the working people, once again in a big way. The Polit Bureau of the CPI(M) calls upon the people to protest against this latest imposition of burdens on their livelihood.
The CPI(M) condemns the deregulation of diesel pricing. This is nothing but an abdication of the responsibility of the government to control and regulate the prices of a crucial item of fuel which has a direct impact on the prices of all essential commodities......The CPI(M) reiterates that the gas pricing system should not be based on the average of prices ruling in international hubs without any reference to the domestic cost of production of gas. .....The announcement of cash transfer scheme through banks for delivery of subsidy for LPG cylinders will lead to the exclusion of a substantial section of the people ...
The rise in petrol prices will further fuel inflation. The people who are suffering from continuous food inflation will be more burdened. There is no transparency in the pricing decision making.
The move will have disastrous repercussions on the cultivating peasantry especially the small and marginal farmers who are already facing an acute agrarian crisis reflected in the fact that suicides by farmers have crossed the 2 lakh mark. It is also to be noted that this move by the Congress-led Government is coming in the context of unprecedented drought and floods that hit large parts of the country in quick succession leading to drastic reduction in acreage and output of major crops.