New Delhi, June 3: Union Minister Vayalar Ravi disapproved of the petrol price hike on Saturday, and suggested a "bold may be taken to reduce the recent increase". The state-run oil companies have announced a reduction of Rs. 2 per litre in petrol prices on Saturday, which became effective from midnight, after increasing the price by Rs.7.50 per litre On May 23.
Minister for Overseas Affairs Mr Ravi, in a letter to Petroleum Minister S Jaipal Reddy, questioned the claims of oil marketing companies that they are incurring huge losses and asked his cabinet colleague to scrutinise the issue in detail. (Read: Vaylar Ravi's letter to Petroleum Minister Jaipal Reddy)
"Apparently, the claim made by oil companies that they are running at a loss seems to be untrue. As a matter of fact, the expenditure of oil companies, including salaries, is among the highest in India and there is a perception that funds are being wasted," Mr Ravi said in the letter.
"In this backdrop, I feel a closer scrutiny is needed before deciding on any further increase in oil prices. Instead, a bold look may be taken at reducing the recent hike," he said.
He is the second Union Minister after Defence Minister A K Antony to have expressed unhappiness at the petrol price increase. Mr Antony had on Wednesday criticised the hike saying it was "not a correct step" and the oil companies should have shown some "propriety" before taking the decision.
Cutting across party lines, leaders have voiced their dissent over the recent petrol price hike. Nationwide protests by Opposition as well as some of the UPA allies, followed by NDA's strike on May 31 clearly put pressure on the government to act.
Even after the announcement, key UPA allies and the Opposition are not happy with the reduction in petrol prices by the state-run oil companies. Dubbing the Rs. two per litre cut in price as 'token', UPA ally Trinamool Congress as well as other opposition parties demanded a 'complete rollback' and said they would not settle for anything less.
Reacting to the state-run oil companies to reduce petrol price, Trinamool Congress chief and West Bengal Chief Minister Mamata Banerjee said, "I am not happy at the cut in petrol price by Rs. two per litre. It is not enough. It is still a burden on the common man. There should have been a total rollback of the hike."
Terming the reduction in prices as 'totally inadequate', CPI National Secretary D Raja also demanded the oil companies should go for a 'complete rollback' because they had effected "such an outrageously steep hike when international crude prices were declining".
Maintaining that the government's view that it did not have any role in the price fixation for petrol due to de-regulation was 'ridiculous', Mr Raja said the oil companies have been following the government diktats regularly. "Otherwise, why did they not raise the prices when Parliament was in session," said Mr Raja. He said the decision came two days after nationwide protests by Left and other parties.
CPI(M) Politbureau said the partial rollback was "unacceptable" and Left parties will continue their agitation for reversal of the price increase.
BJP spokesperson Rajiv Pratap Rudy also pressed for a 'total rollback' and wondered whether the hike of Rs. 6 per litre after the partial rollback was 'acceptable' to the UPA allies. "I want to know whether they (UPA allies) are worth this," Mr Rudy said. He said people of the country are not satisfied with the token rollback and will teach the UPA a "lesson in the coming days".
Tamil Nadu Chief Minister Jayalalithaa termed the partial rollback as an "eyewash" and demanded a complete rollback. In a statement, the AIADMK supremo said, "This small reduction will not soothe people's anger. It will continue to be a burden on poor and middle class".
She said the decision by the Congress-led UPA to reduce the hike by Rs. two reminded her of the Tamil proverb, "feeding popcorns to the hungry elephant." Recalling her earlier criticism, Ms Jayalalithaa said petrol prices were hiked, when people were already burdened by the price rise because of the Centre's "wrong economic policies."
Odisha Chief Minister Naveen Patnaik too dismissed the partial rollback as 'meaningless'. Mr Patnaik said, "We demand complete roll-back in the hike effected in the price of petrol by the central government recently."
BJD had observed a state-wide bandh on May 31 seeking complete roll-back of petrol price hike and party workers had hit the streets to press for the demand. Mr Patnaik too had participated in the demonstrations against the petrol price hike terming it as a burden on the common people.
However, leaders in Congress have heaved a sigh of relief after drawing flak from allies as well the Opposition over the steep hike in petrol prices earlier. "We are happy that the price of petrol has been reduced by Rs. 2.02 per litre. It will give relief to the common man. Our party has great concern for Aam Admi," party spokesperson Rashid Alvi said.
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