Protests across India over diesel price hike, LPG limit

www.mangaloretoday.com

New Delhi, Sept. 14, 2012: The politically tough decision of hiking diesel price and limiting the usage of LPG to just six cylinders in a year on subsidised rate has led to nation-wide protests with the UPA constituents as well as the Opposition parties taking to the streets, demanding an immediate rollback.

Massive protests are taking place in Delhi, Mumbai, Chandigarh, Karnal, Kanpur, Allahabad, Agra, Ludhiana and several other cities over the government’s decision to not just hike disel price by Rs 5 but also limit the usage of LPG to six cylinders per household.

 

UPA constituents like the Trinamool Congress (TMC), Dravida Munnetra Kazhagam (DMK), Rashtriya Janata Dal (RJD) and Nationalist Congress Party (NCP) alongwith the Opposition parties have slammed the decision and want an immediate rollback.

Sources say that the Sonia Gandhi-led Congress core group was against the hike but was finally convinced by Prime Minister Manmohan Singh that the move was necessary to end policy paralysis and bring in big-ticket reforms.

Justifying the decision Planning Commission Deputy Chairperson Montek Singh Ahluwalia said, "Diesel price hike is a tough decision and we need lot of tough decisions to get to 8 per cent growth rate."

The hike in diesel price will lead to increase in freight charges and prices of almost all the commodities, each household will now be entitled to only six cylinders of 14.2-kg per annum at the subsidised rate of Rs 399 and for any further requirement the market rate of Rs 746 per cylinder would have to be paid.

Hours after diesel prices were hiked by Rs 5, Mumbai and Delhi transporters’ association said that vegetables and raw materials for industrial goods would climb up by at least 10 per cent due to diesel price hike.

The Bombay Goodds and Transport Association requested the Prithviraj Chavan government to reduce taxes on diesel and petrol in order to balance the prices with that of other metros. The Maharashtra State Road Transport Corporation asked its 30 subdivisions to give fresh data on the impact of fuel price hike. The association may also send a proposal to the state transport authority to hike ticket fares of state transport buses after analsying the data.

According to sources, the hike in diesel prices will lead to hike in railway freight rates by 10-15 per cent and the announcement is likely to made by next week.

Describing the hike in diesel prices as a cruel joke and mortal blow on the common man and farmers, the BJP accused the government of conspiring with petrol mafia and said it will not allow the hike and take to the streets instead. "This is a cruel joke on the common man in the country. It has hit farmers hard during the peak paddy sowing season. We will not allow this hike. We will not allow this government to loot the common man like this," BJP leader Mukhtar Abbas Naqvi said.

"The way this government is increasing prices of petrol, diesel and LPG despite a reduction in international crude prices, it is a clear-cut case of a conspiracy with the petroleum mafia," Naqvi said.

Meanwhile, Trinamool Congress chief Mamata Banerjee opposed diesel price hike and curb on purchase of subsidised cooking gas cylinders and she is set to lead a street rally on Saturday demanding their rollback. "We are unhappy and astonished that inspite of the formation of the UPA coordination committee after a long time, such a decision was taken without consulting us," the West Bengal Chief Minister said.

Trinamool sources said Banerjee would hit the streets by leading a rally on Saturday protesting the diesel price hike and restriction on buying subsidised LPG cylinders. "The price of diesel has been increased by Rs 5 without any discussion. LPG has been limited to six cylinders annually, where four to five cylinders are required each month. Small households require three cylinders," she said.

"But that does not mean that they can take unilateral decisions regularly while state leaders continue slander campaigns against us. We will not accept this," she said. "If people do not mind, I will be most happy to withdraw support (to the UPA). If I withdraw support then other parties will provide support to them. And, then ask why we left the UPA which led to its collapse. People had misunderstood us when we had withdrawn support earlier.

Kerala Chief Minister Oommen Chandy said the Centre should have avoided the hike in diesel prices and demanded at least a partial withdrawal of the increase. Chandy, who belong to the Congress and heads the UDF government in the state, said here that, "If it is difficult to completely roll back the increase, the Centre should at least reduce the hike."

Both the Congress-led UDF Government as well as CPI(M)-led LDF opposition combine in Kerala said the hike could lead to a further bout of price rise in the state which depends heavily on neighbours for its needs.

The LDF and the BJP have given separate calls for dawn-to-dusk strike on Sunday to protest the decision and demanded roll-back of the hike. The LDF leaders said the hike amounted to a "declaration of war on people."

In many parts of the state, youth outfits of the CPI(M), the CPI and the BJP took out protest marches immediately after the decision was announced.

Associations of bus and truck operators demanded hike in fares, holding that they would not able to maintain their operations at the current rates in the wake of the diesel price hike.

The LDF has also called for a state-wide strike against the diesel price increase on September 15. In a statement here, LDF convenor Vaikom Viswan said the Centre’s decision amounted to "a declaration of war" on the people.

"It cannot be accepted at all. LDF will organise protests throughout the state against the decision and will observe a hartal on September 15," he said.

Key UPA ally DMK, too, described the diesel price hike as ’very high’ and unexpected and sought a roll back of the measure. M Karunanidhi said the hike would further affect the poor and the salaried class who are already reeling under high prices of essential commodities. He requested UPA Chairperson Sonia Gandhi to immediately convene the UPA coordination committee meeting to discuss the matter. Karunanidhi demanded a rollback on the restriction on the purchase of number of subsidised LPG cylinders per year.

Courtesy: IBN Live